Overview
- Jerome Powell said the Federal Reserve received grand-jury subpoenas tied to his June congressional testimony and warned prosecutors have threatened criminal charges.
- Powell argued the legal escalation is retaliation for the Fed setting interest rates based on the public interest rather than the president’s preferences.
- The dollar and U.S. Treasuries came under pressure as investors shifted to havens, with reports of gold nearing $4,600 an ounce and silver around $85.
- Former chairs Ben Bernanke, Alan Greenspan and Janet Yellen condemned the inquiry as an unprecedented attempt to erode the central bank’s independence.
- Political tensions deepened as Republican Sen. Thom Tillis pledged to block Fed nominees until the matter is resolved, while President Trump said he had no knowledge of the DOJ probe.