Powell Discloses DOJ Grand-Jury Subpoenas in Fed Renovation Probe

Overview

• Federal prosecutors in Washington issued grand-jury subpoenas tied to Jerome Powell’s June testimony on the Federal Reserve’s $2.5 billion headquarters renovation.
• Reporting says the inquiry reviews his statements and spending records and was authorized in November by U.S. Attorney Jeanine Pirro.
• The White House denies directing any investigation, and President Donald Trump says he had no knowledge even as he continues to criticize Powell.
• Gold hit record highs as the dollar and U.S. equity futures fell, while former Fed chairs and ex–Treasury secretaries publicly defended the central bank’s independence.
• Global central bankers voiced solidarity on Tuesday, Senator Thom Tillis warned he would block Fed nominees until the case is resolved, and Kevin Hassett said he supports the inquiry as the grand jury weighs whether to indict.