Overview
- Jerome Powell said the Justice Department served the Federal Reserve with grand jury subpoenas tied to his June Senate testimony and warned of a possible criminal indictment, calling the action a pretext to pressure rate cuts.
- News outlets reported a criminal probe targeting the Fed chair, while President Trump told NBC he was unaware of the investigation and denied using it to sway interest-rate decisions.
- The dollar index fell roughly 0.3% and U.S. equity futures slipped, as gold set a record above $4,600 an ounce and silver jumped more than 4% on safe-haven demand.
- Fed-funds futures added about three basis points of expected cuts for 2026, and analysts described the episode as a sharp escalation that threatens the central bank’s autonomy.
- Powell’s term ends in May, with a potential successor expected to be named soon, keeping policy and leadership uncertainty elevated.