Powell Says DOJ Subpoenas Over June Testimony Are Political Pressure on the Fed

Overview

• Powell said the Federal Reserve received grand-jury subpoenas on Friday threatening criminal charges tied to his June Senate Banking testimony.
• He called the action a pretext to force lower interest rates and warned it jeopardizes central-bank independence.
• According to the New York Times, prosecutors are reviewing his public statements and spending records as part of the inquiry.
• Gold and silver hit record highs as the dollar and U.S. equity futures fell and Treasury yields edged higher following the disclosure.
• Senator Thom Tillis vowed to oppose Trump’s Fed nominees until the matter is resolved, while Trump said he knew nothing of the probe and criticized Powell.