The Justice Department subpoenaed the Federal Reserve for information regarding the central bank's headquarters renovation, Federal Reserve Chairman Jerome Powell announced in a video statement Sunday. The move represents an escalation in the Trump administration's efforts to pressure the Fed into implementing more aggressive interest rate cuts.
According to Powell, the Federal Reserve received the grand jury subpoenas on Friday. He stated that the subpoenas threaten criminal indictments related to his testimony before the Senate Banking Committee in June, concerning the renovation project. Powell, however, dismissed the investigation as a pretext. "This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," Powell said in his statement.
The Justice Department's investigation centers on cost overruns associated with the Federal Reserve's headquarters renovation. President Trump has publicly complained about these overruns, while simultaneously urging the central bank to lower interest rates more substantially. The timing of the subpoena raises questions about potential political interference in the traditionally independent operations of the Federal Reserve.
The Federal Reserve, established in 1913, is designed to operate independently from political influence to ensure stable prices and maximum employment. This independence is considered crucial for maintaining economic stability and preventing politically motivated monetary policy decisions. The current administration's repeated public criticisms of the Fed and its chairman have already raised concerns about the erosion of this independence.
The subpoena raises concerns about the potential weaponization of government agencies for political purposes. Legal experts note that while oversight of government spending is legitimate, the timing and nature of the investigation suggest a possible attempt to intimidate the Federal Reserve into complying with the administration's desired monetary policy.
The Justice Department has not yet commented on the subpoena. The Federal Reserve is expected to comply with the subpoena while also defending its independence. The situation is ongoing, and the potential consequences for the Federal Reserve's autonomy and the stability of the U.S. economy remain to be seen.
AI-Assisted Journalism
This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.
Deep insights powered by AI
Continue exploring
Macclesfield FC pulled off a monumental FA Cup shocker, stunning defending champs Crystal Palace 2-1 behind goals from Paul Dawson and Isaac Buckley-Ricketts! The sixth-tier squad's victory at Moss Rose marks the first time in over a century that a non-league team has ousted the reigning FA Cup titleholders, etching their names into soccer lore.
Multiple sources indicate that anti-government protests in Iran have entered their third week, sparked by economic grievances and spreading nationwide despite a government-imposed internet blackout and restrictions on journalists. The Iranian president blames foreign powers for the unrest and has warned against military intervention, while activists report a rising death toll amidst the government crackdown.
Oil prices are increasing amid ongoing protests in Iran, fueled by economic hardship and government crackdowns. Reports suggest the unrest poses a significant threat to the Iranian regime, potentially impacting the loyalty and effectiveness of its security forces, while the U.S. considers potential military responses.
Federal Reserve Chairman Jerome Powell has accused the Justice Department of launching a politically motivated criminal probe into his Senate testimony, alleging it stems from the Fed's refusal to lower interest rates as requested by the Trump administration. Powell asserts the investigation, involving grand jury subpoenas, is a threat to the Fed's independence and its ability to set monetary policy based on economic conditions rather than political pressure, emphasizing his commitment to the Fed's mandate of price stability and maximum employment. The Justice Department has not yet issued a public statement regarding the matter.
A Justice Department criminal inquiry into Federal Reserve Chairman Jerome Powell is drawing criticism from Congress, potentially jeopardizing President Trump's ability to appoint a new Fed leader. The investigation, related to Powell's testimony on Fed headquarters renovations, is viewed by some, including Senator Tillis, as an attack on the Fed's independence, with Tillis vowing to block any Fed nominees until the matter is resolved. Powell himself alleges the probe is politically motivated, aimed at influencing interest rate policy.
Jerome Powell's confirmation of an investigation into his testimony triggered a market selloff, with Nasdaq 100 futures leading the decline at -0.8% and S&P 500 futures down 0.5%, as investors fear a compromised Fed independence. Safe-haven assets like gold and silver surged, rising 1.7% to $4,578/ounce and over 4% respectively, signaling increased demand amidst political and monetary uncertainty.
Following the U.S. incursion into Venezuela and the removal of Nicolás Maduro, Latin America's left is in disarray, prompting a shift in rhetoric towards President Trump. This situation highlights the complex geopolitical dynamics in the region and raises questions about the role of U.S. interventionism and its impact on Latin American sovereignty.
Fintech platforms like Syfe are emerging to address the prevalent practice of Asian households holding significant wealth in cash, which is often devalued by inflation. This trend is shifting as growing wealth and strong stock market performance encourage exploration of diverse investment options, potentially reducing reliance on foreign investors and driving growth for fintech solutions. These platforms aim to facilitate a transition from low-yield cash savings to higher-yield investments.
In a stunning FA Cup shocker, sixth-tier Macclesfield FC dethroned reigning champions Crystal Palace 2-1, fueled by goals from captain Paul Dawson and Isaac Buckley-Ricketts. This historic upset, reminiscent of the greatest giant-killings in FA Cup lore, marks the first time in over a century that a non-league team has ousted the defending champs.
Semantic caching, which focuses on the meaning of queries rather than exact wording, can drastically reduce LLM API costs by identifying and reusing responses to semantically similar questions. By implementing this technique, one company achieved a 67% cache hit rate, leading to a 73% reduction in LLM expenses, highlighting the importance of understanding AI's nuances for cost optimization. This approach moves beyond traditional exact-match caching, which often misses the subtle variations in user queries that still require the same AI response.
Forget Thatcher's "sleep is for wimps" mantra! A growing number of adults are turning to sleep coaches, mirroring a trend previously seen with newborns, as anxieties about sleep skyrocket, with a recent poll showing a significant jump in Americans feeling sleep-deprived compared to a decade ago. Sleep experts are stepping up to help adults tackle sleep challenges stemming from major life events or chronic patterns, aiming to transform daytime and nighttime habits for optimal rest.
Multiple sources indicate that anti-government protests in Iran have entered their third week, sparked by economic grievances and spreading nationwide despite a government-imposed internet blackout and restrictions on journalists. The Iranian president blames foreign powers for the unrest and warns against military intervention, while activists report a rising death toll amid the government crackdown.
Discussion
Join the conversation
Be the first to comment