Overview
- The Federal Reserve says it received grand-jury subpoenas from the Justice Department on Friday tied to Jerome Powell’s June testimony about headquarters renovations, a step that could lead to criminal charges, and DOJ declined to comment.
- In a rare video statement, Powell argues the legal threat is intended to pressure the Fed to cut rates more aggressively even as inflation remains above the 2% target.
- Asked by NBC, President Trump said he knew nothing about the subpoenas and reiterated that interest rates are too high.
- The dispute focuses on renovation costs that Trump cites at $3.1 billion versus the Fed’s estimate near $2.7 billion, a figure Powell defends.
- Senate fallout escalates as Chuck Schumer calls the probe an attack on Fed independence and Republican Thom Tillis vows to block Fed confirmations until legal issues are settled, with Powell’s term ending in May and Kevin Hassett reported as a potential successor.