Chapter 1: What is the main topic discussed in this episode?
News when you want it. With Bloomberg News Now, I'm Doug Krisner. Key Republican lawmakers are speaking out against a grand jury investigation of Fed Chair Jay Powell.
Chapter 2: What are the GOP concerns regarding the Powell investigation?
On Sunday night, Powell said the Fed had been subpoenaed by the DOJ with threats of a criminal indictment. Powell said the action was related to his congressional testimony in June on renovations of the Fed's headquarters. But he also said this should be seen in the broader context of of the Trump administration's threats and ongoing pressure.
Well, immediately, Senator Tom Tillis, a key Republican on the Banking Committee who is not running for re-election, vowed to oppose any Trump nominees to the Fed until this matter is resolved. At the same time, Senate Majority Leader John Thune said the allegations against Powell better be real and serious. Here is Bloomberg's Tyler Kendall.
Chapter 3: How did Powell's congressional testimony lead to a DOJ subpoena?
It does appear that Powell is talking with these senators in real time. Senator Lisa Murkowski, a Republican from Alaska, confirmed she spoke with him earlier this morning, and she is now suggesting that Congress could launch its own investigation into the Department of Justice's investigation. And, Joe, I'll leave you with this one.
The House Financial Services Chair, French Hill, saying that this is an unnecessary distraction, in his words, appearing to take the side of the Fed chair.
That is Bloomberg's Tyler Kendall. Now, sources tell Bloomberg that Bill Pulte, the director of the Federal Housing Finance Agency, was the driving force behind the administration's decision to subpoena the Fed. But Pulte denies that.
The DOJ is outside of my purview. This is out of my purview. I don't know anything about it. And I would defer you to the DOJ.
That is FHFA chief Bill Pulte, who was a guest on Bloomberg Surveillance. Now, we are told other Trump allies are worried this could discourage Powell from leaving the Fed altogether once his term as chair ends in May. You see, Powell could stay on as a Fed governor until 2028. At the same time, former Fed chairs and Treasury secretaries are condemning this investigation.
That story from Bloomberg's Charlie Pellett.
Former Fed chairs Janet Yellen, Ben Bernanke, and Alan Greenspan, the only three living past chairs, all signed the short statement. They were joined by Treasury Secretaries Tim Geithner and Jacob Lew, who both served under President Obama, Henry Paulson, who served under President George W. Bush, and Robert Rubin, who served under President Clinton. In New York, Charlie Pellett, Bloomberg Radio.
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Chapter 4: What reactions have Republican senators had to the Powell situation?
In company news, Meta Platforms is planning to cut around 10% of workers in its reality labs division. This is part of a broader strategy to shift money away from some virtual reality products and into other AI wearables. We are told these layoffs are set to be announced this week. Meantime, Citigroup is set to cut about 1,000 jobs this week.
This would be part of CEO Jane Fraser's plan to keep a lid on cost and improve returns. We are told Citi is reducing its ranks as part of a plan announced two years ago to eliminate 20,000 jobs by the end of 2026. We go to Iran next, where the government says its security forces have full control of the country after two weeks of violent unrest. At the same time, President Trump said the U.S.
is mulling potential options in response to reports of deadly crackdowns on Iranian demonstrators. Here is White House Press Secretary Caroline Lovett.
One thing President Trump is very good at is always keeping all of his options on the table. And airstrikes would be one of the many, many options that are on the table for the commander in chief. Diplomacy is always the first option for the president.
White House Press Secretary Caroline Leavitt. Now, in a post on Truth Social today, President Trump said he will impose a 25 percent tariff on any country that trades with Iran effective immediately. The Danish energy firm Orsted can resume a wind farm project off the coast of Rhode Island while the company challenges a stop-work order from the government.
This is after a federal judge concluded the order may have been arbitrary and capricious and in violation of the Administrative Procedures Act. Bloomberg's Amy Morris has more from Washington.
The Trump administration had ordered a 90-day suspension of five East Coast wind farm projects, citing national security concerns. During a meeting with oil executives on Friday, the president says he's not a fan of windmills.
We have not approved one windmill. since I've been in office, and we're going to keep it that way. My goal is to not let any windmill be built. They're losers.
The judge ruled the Revolution Wind project, intended to power hundreds of thousands of homes in Rhode Island and Connecticut, would be irreparably harmed unless work was allowed to continue during the legal fight with the Trump administration over renewable energy. In Washington, Amy Morris, Bloomberg Radio.
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