Overview
- Powell disclosed Sunday that grand‑jury subpoenas were delivered to the Federal Reserve on Friday and that prosecutors threatened charges tied to his June Senate testimony on a multi‑year headquarters renovation.
- The stated focus is whether Powell made false statements about costs for the Washington building project, which he defends as necessary and says is being used as a pretext.
- Senators in both parties rebuked the move, with Republican Thom Tillis questioning DOJ independence and vowing to block Fed confirmations, and Democrat Elizabeth Warren calling it an attempted corrupt takeover.
- Financial markets weakened on the escalation, with a softer dollar, lower U.S. equity futures, and gold reaching record highs.
- Trump said he had no knowledge of the Justice Department’s steps, outlets reported that Jeanine Pirro approved the probe, and the clash comes as the White House prepares a Fed chair nomination with Powell’s term ending in May.