Powell probe fuels Fed-DOJ clash as subpoenas stall new leadership

The Federal Reserve is opposing the Justice Department’s bid to reinstate subpoenas tied to a probe of Chair Jerome Powell’s congressional testimony, after the DOJ acknowledged it has no evidence of misconduct. Court filings show the Fed arguing subpoenas were improper and that a prior ruling quashing them could be reconsidered, potentially inviting an appeal. The standoff casts a cloud over Powell’s leadership as the White House weighs a successor and the Senate stalls on confirmation, delaying Fed policy and with potential global economic implications.