Summary
The U.S. Department of Justice has issued subpoenas to Federal Reserve Chair Jerome Powell regarding his testimony about the Federal Reserve's office building renovations. This legal action is part of a conflict between President Trump and the Federal Reserve over interest rate policies.
Key Facts
- Federal Reserve Chair Jerome Powell received subpoenas from the Department of Justice.
- The subpoenas are related to his testimony about the Fed's renovations of two office buildings.
- The renovations cost $2.5 billion, which President Trump has called excessive.
- President Trump has critiqued the Fed for not reducing its key interest rate enough.
- The situation represents an unprecedented clash between President Trump and the Federal Reserve.
- Financial markets may react negatively to this news, possibly affecting loan interest rates.
