DOJ subpoenas the Federal Reserve, threatening criminal indictment, says Jerome Powell

Core Viewpoint - The Federal Reserve is facing unprecedented legal challenges from the Department of Justice, which has issued subpoenas and threatened criminal indictment against Chair Jerome Powell regarding his testimony about the Fed's building renovations [1] Group 1: Legal and Regulatory Issues - The Department of Justice has served subpoenas to the Federal Reserve, indicating a serious legal confrontation [1] - The subpoenas are linked to Powell's testimony before the Senate Banking Committee concerning a $2.5 billion renovation project, which has drawn criticism from President Trump [1] Group 2: Political Context - This legal action represents a significant escalation in President Trump's ongoing conflict with the Federal Reserve, an independent agency [1] - Trump has consistently criticized the Fed for not implementing more aggressive interest rate cuts, reflecting his dissatisfaction with the central bank's policies [1] Group 3: Market Implications - The renewed conflict between the Trump administration and the Federal Reserve is expected to create volatility in financial markets, particularly affecting borrowing costs for mortgages and other loans [1] - The situation may lead to increased uncertainty in the financial sector as the legal challenges unfold [1]