Overview
- Powell disclosed that grand jury subpoenas were served Friday with a threat of criminal charges tied to his June Senate testimony on the Federal Reserve’s roughly $2.5 billion headquarters renovation.
- The Justice Department declined to discuss specifics, citing Attorney General Pam Bondi’s focus on taxpayer‑abuse cases, and reports indicate the U.S. Attorney’s Office for the District of Columbia is handling the probe.
- Powell labeled the case a pretext to force deeper rate cuts and vowed to continue in his role, while President Trump denied knowledge of the investigation and criticized Powell’s performance.
- Republican Sen. Thom Tillis and Democratic Sen. Elizabeth Warren said they will block any Fed nominees until the legal dispute is resolved, complicating plans to replace Powell when his chair term ends in May.
- Markets reflected caution, with the dollar slipping and gold rising as stocks opened lower, and the late‑January Fed policy meeting now approaches under heightened scrutiny.