Fed Chair Powell Responds to Justice Department Subpoenas

Summary

Federal Reserve Chair Jerome Powell says the Justice Department served the Fed with grand jury subpoenas and threatened criminal indictment over his June Senate testimony on Fed building renovations. Powell calls the action unprecedented and tied to political pressure over the Fed's independent interest-rate decisions, not the testimony or renovation project itself. He says he will continue serving with integrity and defends the Fed's ability to set policy based on evidence and economic conditions.

• DOJ served the Federal Reserve with grand jury subpoenas tied to Powell's June Senate testimony.
• The testimony involved a multi-year renovation of historic Federal Reserve office buildings.
• Powell says the indictment threat is a pretext and part of broader administration pressure on the Fed.
• He argues the real issue is whether the Fed can set rates independently rather than under political pressure.
• Powell says the threat is a consequence of Fed rate decisions not aligned with the president's preferences.
• He commits to continuing his role without political fear or favor and focused on price stability and maximum employment.
• No specific securities, sectors, or investable expressions were named in the statement.