Powell "Dragged" by Law!
Fed Chairman Jerome Powell announced that the US central bank had received a grand jury subpoena from the Department of Justice (DOJ), raising the possibility of criminal charges.
According to Powell, this legal action is related to his testimony to Congress in June, which discussed a project proposed by Fed headquarters.
However, Powell strongly rejected the narrative that this case was purely about arguments or building reconstruction, calling them "surface-level arguments" and not the real issue.
Powell emphasized that the threat of criminal charges arises because the Fed sets interest rates based on its judgment in the best public interest, not on the President's preferences.
He warned that this case touches on a major issue: whether the Fed can still determine interest rate policy based on data and economic conditions, or is instead being guided by political pressure and intimidation.
The market reacted quickly: the US dollar weakened against all major currencies, gold continued its rally to a new record, and S&P 500 futures fell about 0.3%.
Powell also said that the potential charges must be viewed in the context of the government's repeated pressure on the Fed. However, he emphasized that he would continue to operate with integrity and a commitment to serving the American people.
5 Key Points:
- Powell said the Fed received a grand jury subpoena from the DOJ, leading to the threat of criminal charges.
- The case is linked to June testimony regarding the reorganization of the Fed's headquarters.
- Powell considers the recommendations/testimony merely a pretext; the core issue is political pressure on interest rate policy.
- The market reacted immediately: the dollar weakened, gold hit a record, and S&P 500 futures fell.
- The Trump-Powell conflict heated up again due to the push for aggressive interest rate cuts. (asd)
Source: Newsmaker.id
