Overview
- Powell disclosed that grand jury subpoenas were served Friday tied to his June Senate testimony on the Fed’s $2.5 billion headquarters renovation.
- Calling the case a pretext to pressure monetary policy, Powell vowed in a video statement to continue setting rates based on economic data, not political preference.
- The probe is being handled by the U.S. Attorney’s Office in Washington; reporting says it opened in November with approval by Jeanine Pirro, and DOJ leadership has prioritized alleged taxpayer‑abuse cases.
- Bipartisan backlash intensified, with Republican Thom Tillis and Democrat Elizabeth Warren pledging to oppose Fed nominees until the matter is resolved, and other lawmakers criticizing the move.
- Markets showed risk‑off signs after the disclosure, with a weaker dollar, record gold gains and equities slipping, while President Trump denied ordering or knowing of the investigation.