Federal Reserve Chair Jerome Powell announced that the Department of Justice has issued subpoenas to the Fed, threatening criminal charges related to his testimony about the Fed's building renovations. This marks a significant escalation in President Trump's ongoing conflict with the Fed, which he has criticized for not lowering interest rates sufficiently. Powell defended the Fed's independence, stating that the threat of criminal charges is an attempt to undermine it. The situation could impact financial markets and investor confidence in US Treasury securities.