Overview
- Jerome Powell confirmed the Federal Reserve received grand jury subpoenas tied to his June testimony on a $2.5 billion HQ renovation and said the threat included a potential indictment.
- Powell characterized the probe as political pressure from the Trump administration to push easier policy, while Trump told NBC News he didn’t know about the investigation and denied using it to influence rates.
- Markets reacted with risk-off moves: the dollar slipped roughly 0.3%–0.4%, U.S. equity futures fell, gold set a record above $4,600 an ounce, and silver jumped about 5%–6%, while 10-year Treasury yields edged higher.
- The episode intensified concerns over Federal Reserve independence as investors look to Tuesday’s CPI report and big-bank earnings; Powell’s term ends in May and the White House has signaled a replacement could be named this month.
- Geopolitical tensions, including unrest in Iran and new tariff threats related to countries doing business with Tehran, reinforced safe-haven flows and added to volatility across assets.