Overview
- The Federal Reserve received grand jury subpoenas on Friday, with a threat of criminal charges tied to Jerome Powell’s June appearance before the Senate Banking Committee.
- Powell said the action is not about his testimony or building work and asserted it seeks to influence monetary policy decisions rather than evidence-based rate setting.
- The Justice Department declined to discuss specifics, and reporting identifies the U.S. Attorney’s Office in Washington, led by Jeanine Pirro, as overseeing the inquiry.
- Markets showed initial stress on the news, with the dollar weaker, gold at a record, and U.S. equity futures modestly lower.
- Powell vowed to remain in his role as chair through his May term end and on the Board through 2028, as President Trump denied knowledge of the probe and Sen. Thom Tillis said he will oppose Fed nominations until the matter is resolved.