Fed Served With Grand Jury Subpoenas by Justice Department

Summary

The segment reports that Federal Reserve Chair Jerome Powell said the Fed was served grand jury subpoenas by the Justice Department threatening criminal indictment, escalating Trump administration pressure on the central bank. Powell defended the Fed's independence in setting interest rates, while Trump denied knowledge of the investigation. Bloomberg's Rosalyn Matheson outlined the probe's origins in Fed building renovations, Powell's possible departure, succession speculation, and the upcoming Lisa Cook Supreme Court arguments. No explicit trading recommendations were made.

• Powell said the Fed received grand jury subpoenas from the Justice Department threatening criminal indictment.
• Powell framed the move as an escalation of Trump administration pressure and defended the Fed's independence.
• Trump denied knowing about the DOJ investigation into the central bank.
• Rosalyn Matheson tied the probe to Fed building renovation costs and an allegation Powell misled Congress.
• Matheson noted Powell's chair term ends in May, while his governor term runs until 2028.
• Trump has said he has decided on a Powell successor, with Kevin Hassett seen as a frontrunner.
• Senator Thom Tillis indicated he may block Fed nominations until legal matters are addressed.
• The Supreme Court is set to hear oral arguments next week in the Lisa Cook case over firing Fed officials.