Overview
- The Justice Department’s criminal inquiry centers on surging costs for the Fed’s headquarters overhaul, which rose from about $1.9 billion to roughly $2.5 billion, with officials alleging Powell misled about the price tag.
- Powell said the Fed received grand jury subpoenas and rejected the accusations, describing the case as a pretext to pressure the central bank’s rate decisions.
- In a Reuters interview, Trump said he does not currently intend to remove Powell but left his options open as he weighs successors Kevin Warsh or Kevin Hassett ahead of Powell’s term ending in May.
- Republican senators, global central bankers and investors criticized the probe as politicizing monetary policy, while Trump dismissed the concern and said senators should be loyal.
- Retail investors on Reddit’s WallStreetBets voiced support for Powell, and betting markets showed falling odds that the administration will bring charges in the near term.