USD: Fed subpoenas target Powell over HQ renovations – ABN AMRO

The Federal Reserve is facing a grand jury subpoena from the Justice Department regarding Jerome Powell's June congressional testimony about headquarters renovations. This report by ABN AMRO's Senior Economist Rogier Quaedvlieg highlights new challenges for the Fed in an already tense economic environment. The investigation could affect investor sentiment and create risks associated with a potential erosion of trust in U.S. economic leadership. The implications of Powell's testimony will be closely monitored, particularly in terms of how it influences market trust. The impact on the dollar's movements could be significant depending on the developments, thus traders should implement diligent risk management strategies given the expected volatility in financial stocks and currency markets.