Overview
- Powell said subpoenas served Friday threaten a criminal indictment related to his June Senate Banking Committee testimony on the Fed’s building renovations.
- Reporting indicates the D.C. U.S. Attorney’s Office led by Jeanine Pirro approved the inquiry in November, and the Justice Department declined case-specific comment while noting Attorney General Pam Bondi’s taxpayer‑abuse focus.
- President Donald Trump said he did not know about the investigation and rejected the idea it was intended to sway interest‑rate policy, though he continued to fault Powell’s performance.
- Cost estimates for the Washington headquarters project have risen to roughly $2.5 billion, and Powell has previously disputed allegations of luxury features cited by critics.
- The action sparked warnings over central‑bank independence, with Sen. Thom Tillis saying he will oppose Fed nominees until the matter is resolved, and early market reports noted a weaker dollar and stronger gold.