Trump Vs. Powell: US Serves Fed With Subpoenas

Summary

Federal Reserve Chair Jerome Powell said the Fed was served grand jury subpoenas from the Justice Department related to his June congressional testimony on Fed headquarters renovations. Michael McKee described the move as an extraordinary escalation in the Trump administration's pressure on the Fed, while noting it is not yet an indictment. The segment also discussed political obstacles to replacing Powell and market pricing that barely assigns any chance to a January Fed move.

• Powell said the Fed received DOJ grand jury subpoenas tied to his testimony on Fed building renovations.
• Michael McKee called the Fed's public response extraordinary and said Powell effectively accused the president of extortion.
• The subpoenas are not yet an indictment, and the administration denied involvement.
• The Supreme Court is set to take up the effort to fire Powell later this month.
• Senator Tillis's opposition could stall any Fed chair nomination in the Banking Committee.
• Markets are pricing only about a 4% chance of a January Fed move, down after Friday's jobs report.