Powell Says DOJ Subpoenas Threaten Fed Independence

Overview

• The Federal Reserve received grand-jury subpoenas on Friday from the D.C. U.S. Attorney’s Office tied to Powell’s June Senate testimony on a $2.5 billion headquarters renovation, with approval reported in November by U.S. Attorney Jeanine Pirro.
• Powell characterized the threatened charges as political pressure to influence interest-rate decisions and said he will continue to serve with integrity while reiterating respect for the rule of law.
• Gold hit record highs and the U.S. dollar weakened as equity futures slipped following news of the investigation.
• The White House and President Trump said he neither ordered nor knew of the inquiry, responding after Powell’s statement went public.
• Bipartisan lawmakers, former Fed leaders and ex-Treasury secretaries defended central-bank independence, peer central bankers issued a manifesto supporting autonomy, and Brazil’s TCU and central bank settled on a lighter diligence instead of a full inspection in the Banco Master case.