Overview
- Powell said Friday’s grand-jury subpoenas target his June Senate testimony on the multiyear renovation of the Federal Reserve’s Washington headquarters.
- The New York Times reported the inquiry is overseen by the D.C. U.S. Attorney’s Office led by Jeanine Pirro, with key procedural details such as any grand jury proceedings still unclear.
- Calling the allegations a pretext, Powell said the threatened charges stem from the Fed resisting pressure to cut rates to the president’s liking and he pledged to continue in his role.
- A Justice Department spokesperson said Attorney General Pam Bondi has directed U.S. Attorneys to prioritize potential abuses of taxpayer dollars, and prosecutors have requested renovation documents from Powell’s staff.
- Markets reacted with a weaker dollar, record gold and lower U.S. equity futures, as investors weighed risks to policy continuity with Powell’s chair term ending in May 2026.