Fed Chair Powell under criminal investigation by DOJ: What you need to know

Summary

CNBC's Eamon Javers reports that the Department of Justice served grand jury subpoenas to the Federal Reserve as part of an investigation tied to Chair Powell's June Senate testimony about the Fed's building construction project. Powell issued a video statement calling the probe a pretext and framing it as a threat to the Fed's ability to set rates independently. The segment also notes market rate-cut expectations are falling and the long end of the Treasury curve is near early-September highs.

• DOJ served grand jury subpoenas to the Federal Reserve.
• Investigation relates to Powell's testimony on Fed building construction.
• Powell says the criminal threat is a pretext tied to monetary policy independence.
• Trump has criticized Powell over cost overruns and denies involvement.
• DOJ says it prioritizes investigating abuse of taxpayer dollars.
• Market context: rate-cut expectations are declining.
• Long end of Treasury curve near highest since early September.