Powell Says DOJ Grand Jury Threatened Charge Over June Testimony

Overview

• Powell disclosed Sunday that the Federal Reserve received grand-jury subpoenas last week threatening a criminal indictment tied to his June Senate testimony on headquarters renovation costs.
• He called the stated rationale a pretext and said the pressure targets the Fed’s rate decisions made in the public interest rather than the president’s preferences.
• Markets moved on the news, with the dollar weakening, gold reaching a record high, and S&P 500 futures falling about 0.3%.
• Trump told NBC he was unaware of the Justice Department’s steps and criticized Powell’s performance, while the DOJ declined comment and noted a directive to prioritize probes of taxpayer-money abuses.
• The episode escalated the political fight over the central bank, as Senator Thom Tillis vowed to oppose Fed nominees until the legal issue is resolved and a separate effort to remove Governor Lisa Cook heads to the Supreme Court.