Markets brace for impact on Korean won stability ahead of central bank’s monetary policy board meeting this week

Federal Reserve Chair Jerome Powell issued a statement Sunday evening (Monday morning, KST) after the U.S. Department of Justice served the Federal Reserve with grand jury subpoenas related to a criminal investigation into his 2025 congressional testimony. The subpoenas, served Friday, relate to Powell’s June statements regarding a roughly $2.5 billion renovation of the Fed’s historic headquarters, with prosecutors examining whether his testimony accurately reflected the project’s scope and cost.

In the statement, Powell characterized the investigation as “pretextual,” labeling it an attempt by the Donald Trump administration to intimidate the central bank into aligning interest rate policy with executive preferences. He said the matter was unrelated to congressional oversight and warned that the threat of criminal charges risked undermining the Fed’s ability to set interest rates based on economic evidence rather than executive preferences. Powell said he would not resign and intended to serve out his term as chair through May 2026.

Federal Reserve Chair Jerome Powell issued a statement Sunday evening (Monday morning, KST) after the U.S. Department of Justice served the Federal Reserve with grand jury subpoenas related to a criminal investigation into his 2025 congressional testimony. The subpoenas, served Friday, relate to Powell’s June statements regarding a roughly $2.5 billion renovation of the Fed’s historic headquarters, with prosecutors examining whether his testimony accurately reflected the project’s scope and cost.

In the statement, Powell characterized the investigation as “pretextual,” labeling it an attempt by the Donald Trump administration to intimidate the central bank into aligning interest rate policy with executive preferences. He said the matter was unrelated to congressional oversight and warned that the threat of criminal charges risked undermining the Fed’s ability to set interest rates based on economic evidence rather than executive preferences. Powell said he would not resign and intended to serve out his term as chair through May 2026.

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