Follow along to the markets after Fed Chair Jerome Powell said central bank received grand jury subpoenas for what he called a pretext.

Federal Reserve Chairman Jerome Powell took a defiant stance Sunday after federal prosecutors opened a criminal investigation into his renovation of the Central Bank’s headquarters. Powell, 72, released a rare video message after the Department of Justice served the Federal Reserve with grand jury subpoenas last week.

Richard Yetsenga, ANZ's group chief economist, said that for the U.S. financial markets in their entirety, the operation of all three of the Fed's policy arms is likely to be in flux - rates, the balance sheet and banking sector regulation.

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

Bullion rose to just shy of $4,600 an ounce on Monday after Fed Chair Jerome Powell said the central bank had been served grand jury subpoenas from the Justice Department related to his June congressional testimony on renovations of the Fed’s headquarters.

Tension between the White House and the U.S. central bank sharply escalated over the weekend, with U.S. Federal Reserve Chair Jerome Powell saying the administration had threatened him with a criminal indictment related to the Fed headquarters renovation.

No one, certainly not the chair of the Federal Reserve, is above the law, but this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said.

Looking ahead to 2026, the Fed’s own median projection or “dot plot” suggested there would be only one additional 25 basis points cut. This would move the rate to around 3.25% to 3.50% by year end. Market expectations are slightly more dovish, calling for two rate cuts, which would push rates closer to 3%.