Powell says the Fed received DOJ subpoenas

Core Viewpoint - The Federal Reserve Chair Jerome Powell has been served grand jury subpoenas from the Department of Justice, which may lead to criminal indictment, focusing on his June testimony regarding renovations at Fed office buildings [1][2] Group 1: Federal Reserve's Independence - Powell emphasized that no one, including the Fed Chair, is above the law, but the subpoenas should be viewed in the context of the Trump administration's pressure on the Fed [2] - The situation raises concerns about whether monetary policy will be influenced by political pressure rather than economic conditions [2] Group 2: Renovation Controversy - The planned $2.5 billion renovations of the Fed's headquarters have been criticized by White House officials, accusing Powell of overspending and violating oversight laws [5] - Trump has previously suggested that Powell's actions could be grounds for dismissal, although he later indicated it was unlikely unless fraud was involved [5] Group 3: Market Reactions - Following the news of the subpoenas, the dollar and US stock futures declined, while gold prices increased by as much as 2%, indicating a flight to safe-haven assets [4] Group 4: Interest Rate Policy - Trump has been vocal about urging the Federal Reserve to lower interest rates to stimulate the economy, with recent rate cuts bringing the range to 3.5%-3.75% [6] - Powell has faced criticism from Trump for not implementing larger rate cuts, highlighting ongoing tensions between the administration and the Fed [6]