Overview
- Powell disclosed that the Fed received grand jury subpoenas on Friday tied to his June testimony about the headquarters renovation and called the threatened charges a pretext to influence monetary policy.
- Reporting indicates the probe was initiated in November by D.C. U.S. Attorney Jeanine Pirro, with one account saying top Justice Department leaders were not briefed on last week’s subpoena decision.
- Republican senators including Thom Tillis and Lisa Murkowski signaled they will oppose confirmation of any Trump Federal Reserve nominees until the legal matter is resolved, with others in the GOP questioning the basis for the case.
- A bipartisan group of former Fed chairs and prominent economists condemned the investigation as an attack on central-bank independence that could carry harmful economic consequences.
- President Trump denied prior knowledge of the probe as markets showed a cautious reaction, and Powell’s term as chair approaches a May end date with his governor term running to 2028.