Overview
- Jerome Powell said the Justice Department served grand jury subpoenas tied to his June Senate testimony on a Fed building renovation and that he was threatened with indictment, which he called a pretext to force rate cuts.
- Global central bank officials and top Wall Street bank CEOs voiced support for Federal Reserve independence, with reports of a coordinated statement backing Powell.
- Markets initially sold the dollar and pushed gold to a record before the greenback recovered to near a one‑month high after December CPI came in broadly as expected.
- Futures pricing showed about a 95% probability the Fed will hold rates at its late‑January meeting, according to CME FedWatch, as equities rotated and volatility stayed contained.
- President Trump denied knowing about the probe, proposed a 10% cap on credit card rates that pressured financial stocks, and warned of 25% U.S. tariffs on countries trading with Iran, lifting oil prices; Powell’s term ends in May, keeping leadership questions in focus.