Justice Department Subpoenas Fed Chair Powell Over HQ Renovations, Interest Rates

• Federal Reserve Chair Jerome Powell revealed the Justice Department served grand jury subpoenas related to his June congressional testimony.
• Powell stated the subpoenas threaten a criminal indictment concerning ongoing renovations of the Fed’s headquarters.
• He rejected claims the action was about renovations or testimony, asserting it's about political pressure on interest rate decisions.
• Powell emphasized the importance of the Fed setting interest rates based on economic conditions, free from political intimidation.
• The news led to a weaker US dollar, gold reaching record highs, and a 0.3% drop in S&P 500 Index futures.

Why It Matters: Justice Department subpoenas Fed Chair Powell, escalating political pressure on the central bank's independence.