Federal Reserve Chairman Jerome Powell said on Sunday that the Justice Department had subpoenaed the central bank and threatened criminal prosecution over his testimony this summer about renovations to the Fed building.
The move marks an unprecedented escalation in President Donald Trump’s battle with the Fed. The Fed, an independent agency, has repeatedly criticized the central bank for not cutting key interest rates as sharply as he would have liked. A new round of fighting could roil financial markets on Monday and could lead to higher borrowing costs for mortgages and other loans over time.
The Fed chairman said the subpoenas were related to Powell’s testimony before the Senate Banking Committee in June about the Fed’s $2.5 billion renovation of two office buildings, a project Trump criticized as excessive.
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Canada seeks to reduce dependence on U.S., its leader to visit China to rebuild ties
Canadian government leaders are visiting China this week for the first time in nearly a decade, aiming to rebuild Canada’s frayed relationship with the world’s second-largest economy and reduce Canada’s reliance on the United States, its neighbor and one of Canada’s most supportive and steadfast allies.
The push from Canadian Prime Minister Mark Carney, who arrived on Wednesday, is part of a major rethink as relations with the United States sour. The United States is the world’s largest economy and Canada’s largest trading partner by far.
Carney aims to double Canada’s non-U.S. exports over the next decade in the face of President Trump’s tariffs and U.S. leaders thinking Canada could become the “51st state.”
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China says the United States should not use other countries as an “excuse” to seek interests in Greenland
A spokesman for the Chinese Ministry of Foreign Affairs made the comments while answering questions at a daily briefing. President Trump has said he wants a deal to acquire Greenland, a semi-autonomous region of NATO ally Denmark, to prevent Russia or China from taking it over.
Tensions have risen this month between Washington, Denmark and Greenland as Trump and his administration push the issue and the White House considers a range of options, including military force, to acquire the giant Arctic island.
Danish Prime Minister Mette Frederiksen has warned that a US takeover of Greenland would mark the end of NATO.
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Trump ‘inclined’ to exclude Exxon Mobil from Venezuela after CEO responds at White House meeting
Trump said on Sunday he was “inclined” to exclude Exxon Mobil from Venezuela as its chief executive expressed skepticism about oil investment efforts in the country following the fall of former President Nicolás Maduro.
“I don’t like the response from ExxonMobil,” Trump told reporters aboard Air Force One as he left West Palm Beach, Florida. “They played so cutely.”
At a meeting with oil executives on Friday, Trump sought to ease the companies’ concerns and said they would deal directly with the United States, not the Venezuelan government.
However, some people are not convinced.
“If we look at Venezuela’s current business setup and framework, it’s uninvestable,” said Darren Woods, chief executive of ExxonMobil, the largest U.S. oil company.
An Exxon Mobil spokesman did not immediately respond to a request for comment on Sunday.
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Trump’s motorcade in Florida diverted due to ‘suspicious object’
When Trump left Florida on Sunday, his motorcade took a different route to the airport due to a “suspicious object,” according to the White House.
The object, which the White House did not describe, was discovered during a security scan before Trump arrived at Palm Beach International Airport.
“Further investigation is warranted and the route of the President’s motorcade will be adjusted accordingly,” White House press secretary Carolyn Leavitt said in a statement on Sunday.
When asked by reporters about the plan, the president said: “I don’t know anything about it.”
U.S. Secret Service spokesman Anthony Guglielmi said the second route was taken just as a precaution and “it’s standard protocol.”
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Trump says Iran wants to negotiate as death toll from protests rises to at least 544
Trump said Iran wanted to negotiate with Washington after it threatened to crack down on protesters in the Islamic republic. Activists said on Monday that the death toll from demonstrations across the country had risen to at least 544.
Iran had no direct reaction to Trump’s comments, which came after a visit this weekend by Oman’s foreign minister, who has long been an interlocutor between Washington and Tehran. It’s unclear what Iran can promise, especially with Trump’s stringent demands on its nuclear program and ballistic missile arsenal, which Tehran insists are vital to its defense.
Addressing foreign diplomats in Tehran, Iranian Foreign Minister Abbas Araghchi insisted that “the situation is completely under control” and made fiery remarks blaming Israel and the United States for the violence without providing evidence.
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Fed Chairman Powell says Justice Department has subpoenaed central bank and threatens criminal prosecution
Federal Reserve Chairman Jerome Powell said on Sunday that the Justice Department had subpoenaed the central bank and threatened criminal prosecution over his testimony this summer about renovations at the Fed building.
The move marks an unprecedented escalation in Trump’s battle with the Fed. He has repeatedly criticized the Fed for not cutting key interest rates as sharply as he would have liked. A new round of fighting could roil financial markets on Monday and could lead to higher borrowing costs for mortgages and other loans over time.
The Fed chairman said the subpoenas were related to Powell’s testimony before the Senate Banking Committee in June about the Fed’s $2.5 billion renovation of two office buildings, a project Trump criticized as excessive.
Powell on Sunday abandoned the restraint he had shown so far in responding to criticism and personal insults from Trump, which he has largely ignored. Instead, Powell issued a video statement in which he bluntly described the threat of criminal charges as a simple “excuse” to undermine the Fed’s independence in setting interest rates.
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