Overview
- The Justice Department served grand jury subpoenas to the Federal Reserve as prosecutors examine whether Jerome Powell misstated details of the headquarters renovation in congressional testimony, including references to marble, private elevators, a rooftop terrace and dining rooms in earlier plans.
- Powell released an unusual video statement asserting the probe is political pressure to sway interest‑rate decisions and pledged to continue his duties with integrity.
- President Trump escalated attacks on Powell as “incompetent or crooked,” said the chair “will be gone soon,” signaled plans to name a replacement within weeks, and rejected JPMorgan CEO Jamie Dimon’s warning that the probe threatens Fed independence.
- Eleven central bank chiefs issued a solidarity statement supporting the Fed’s independence, while financial leaders such as Dimon and BNY Mellon’s Robin Vince cautioned that eroding autonomy could ultimately push borrowing costs higher.
- Senators Thom Tillis and Lisa Murkowski said they would block new Fed nominees until the investigation is resolved, markets showed limited immediate reaction, and U.S. Attorney Jeanine Pirro defended the subpoenas as necessary after what she described as unreturned outreach.