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Powell Confirms DOJ Subpoenas as Dollar Slips and Gold Sets Records

Powell says the legal move stems from White House pressure over rate decisions, raising new concerns over the Fed’s independence.

Overview

  • Grand-jury subpoenas were delivered to the Federal Reserve tied to Jerome Powell’s June testimony on building renovations, with the Fed chair calling the rationale a pretext.
  • The U.S. Dollar Index fell about 0.37% to 98.759 as the euro, Swiss franc and yen strengthened, and U.S. equity futures and Treasuries came under pressure.
  • Gold briefly topped $4,600 an ounce and silver hit a record near $84, reflecting a flight to perceived havens during the latest political and policy uncertainty.
  • Shares of major credit-card issuers dropped roughly 5%–9% after President Trump proposed a temporary 10% cap on credit-card interest rates.
  • Lawmakers from both parties criticized the escalation, Trump said he was unaware of any DOJ probe, and investors are watching Tuesday’s U.S. CPI and the Fed’s late-January meeting for direction.