Overview
- Jerome Powell disclosed receipt of a Justice Department grand‑jury subpoena tied to his past congressional testimony and labeled the probe political pressure that undermines central‑bank independence.
- President Trump said he was unaware of the investigation and criticized Powell’s performance, continuing a long‑running dispute over interest‑rate policy.
- Governors from major central banks, including the ECB and Bank of England, issued a joint statement expressing full solidarity with Powell; the Bank of Japan did not take part and declined to say if it was invited.
- Prime Minister Sanae Takaichi began coordinating to inform Liberal Democratic Party leaders that she intends to dissolve the lower house at the start of the Diet session on Jan. 23.
- If dissolution occurs on Jan. 23, the government is weighing two election schedules—notice Jan. 27 with voting Feb. 8, or notice Feb. 3 with voting Feb. 15—while Osaka’s governor and mayor plan resignations to force local reruns on the same day.