Powell Says DOJ Subpoenas Threaten Fed Independence, Deepening Clash With Trump

Overview

• Jerome Powell disclosed that the Fed received grand-jury subpoenas tied to his June testimony on a costly headquarters renovation and called the move a pretext to influence interest-rate decisions.
• The White House says President Trump did not order the investigation, as Trump claims no knowledge of it and continues to criticize Powell’s leadership.
• Former Fed chairs Janet Yellen, Ben Bernanke and Alan Greenspan joined ex–Treasury secretaries in a joint statement warning the probe seeks to undercut central-bank independence.
• Global central-bank officials are preparing a BIS-backed solidarity statement supporting the Fed’s autonomy, with Canada’s Tiff Macklem offering full public support for Powell.
• Markets showed a weaker dollar and record gold prices, U.S. stocks later closed slightly higher, and Senator Thom Tillis vowed to oppose Trump’s Fed nominees until the legal questions are resolved.