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Fed chair accuses DoJ of threatening criminal charges over building renovation projects because central bank defied Trump's interest rate demands

Federal Reserve Chair Jerome Powell said the US central bank was served grand jury subpoenas on Friday from the Department of Justice that threatened criminal indictment. In a statement on Sunday night, Powell said the subpoenas focused on his June testimony about renovations at historic Fed office buildings.

The Justice Department served the U.S. Federal Reserve with grand jury subpoenas on Friday, Fed Chair Jerome Powell said Sunday, threatening an “unprecedented” criminal indictment against him over cost overruns for the renovation of the Fed's headquarters building.

The US attorney's office for the District of Columbia has opened a criminal investigation into Federal Reserve Chair Jerome Powell, according to a report.

Asian currencies were mixed against the dollar in the early morning session. A “glass‐half‐full” December U.S. payrolls report has increased risks that the Fed delays the rate cuts, OCBC said.

In a statement Sunday evening, Fed Chair Jerome Powell said the subpoenas from the Justice Department should be seen in a broader context.

U.S. Federal Reserve Chair Jerome Powell said on Sunday the Trump administration has threatened him with a criminal indictment over Congressional testimony he gave last summer, sending subpoenas to the Fed on Friday in what he called a "pretext" aimed at furthering pressure on him in a dispute with President Donald Trump over interest rates.

Fed Chair Powell under criminal probe by federal prosecutors: Report

The Fed received grand jury subpoenas from the Justice Department on Friday that threaten a criminal indictment relating to Chair Jerome Powell's testimony last summer about the central bank's building renovation project.

The major banks will kick off fourth-quarter earnings season this week, and the economic data highlight of the week will be the consumer price index for December.

With earnings season about to kick off, U.S. stock futures slipped Sunday, after the Dow and S&P 500 closed Friday at record highs.

Consumer sentiment rose to 54 in the University of Michigan's latest survey, exceeding economists' expectations despite concerns about elevated inflation and a cool labor market.

JPMorgan (JPM) kicks off Q4 earnings, potentially setting the tone for sector rotation or broad de-risking depending on its report and outlook. Macro focus centers on December CPI, with headline and core inflation both forecast to rise 0.3% month-on-month, impacting market sentiment.

Treasury Secretary Scott Bessent reveals Trump has one final interview before naming the next Federal Reserve chair, with decision expected by month's end.

We'll also see earnings from Goldman Sachs, PNC, and Delta. The consumer price index will be the big economic data release of the week.

Looking beyond AI chipmakers, rare earths, and defense contractors.

The December CPI report could decisively clarify if November's inflation reading was a distortion or a genuine downside surprise. CPI swaps markets are pricing in a year-over-year rate near 3%, notably above both analyst and betting market forecasts.

Qatar and the United Arab Emirates will soon join a U.S.-led initiative to secure AI and semiconductor supply chains, Undersecretary of State for Economic Affairs Jacob Helberg told Reuters in an interview.

U.S. equity markets rallied as investors parsed employment data pointing to measured cooling in labor markets and weighed a wave of policy “trial-balloons” from the White House centered on affordability. The S&P 500 rallied 1.7% to its first record-high of the year after posting 38 records in 2025. Small-cap stocks outperformed amid hopes of a long-awaited rotation away from mega-caps. Mortgage Shock Reawakens Housing: Mortgage rates fell below 6% for the first time since early 2023 following aggressive MBS purchases, sparking double-digit gains in homebuilders and strength across housing-adjacent sectors.

TipRanks discusses three dividend-paying stocks, including Permian Resources and International Business Machines.