Bank of Canada governor defends Powell amid Justice Department probe

Bank of Canada Governor Tiff Macklem publicly defended Federal Reserve Chair Jerome Powell after Powell said the U.S. Justice Department subpoenaed the Fed over his congressional testimony; Macklem said Powell has his full support and emphasized central bank independence. Undetermined at this time.

Bank of Canada Governor Tiff Macklem issued public support for U.S. Federal Reserve Chair Jerome Powell on Monday. Powell said the U.S. Justice Department had subpoenaed the Federal Reserve in connection with his June testimony about a renovation project. Powell framed the inquiry as linked to disagreement over interest rate policy. Macklem said Powell has his full support and stressed the importance of central bank independence. Key facts: - Macklem said Powell has his full support and praised his public service. - Powell announced the Justice Department subpoena related to his June testimony about a Federal Reserve renovation project. - Markets were not pricing in near-term interest-rate cuts and no next legal step was reported. Summary: Macklem's statement underscored public backing for an independent central bank in the face of a Justice Department inquiry. The situation has drawn bipartisan commentary and has not produced a reported next procedural step. Undetermined at this time.