Bank of Canada's Macklem offers full support to Powell amid U.S. probe

Bank of Canada Governor Tiff Macklem said he offered full support to Federal Reserve Chair Jerome Powell after Powell said the U.S. Justice Department served the Fed with subpoenas tied to his congressional testimony about renovations; Powell described the action as part of ongoing pressure from the U.S. administration.

Tiff Macklem, governor of the Bank of Canada, publicly expressed full support for Federal Reserve Chair Jerome Powell. Powell said in a video statement that the U.S. Justice Department has served the Fed with subpoenas he described as threatening a criminal indictment. He said the subpoenas were related to his congressional testimony about renovations at the Fed's headquarters. Powell also framed the inquiry as part of what he described as ongoing pressure from the U.S. administration. Reported details: - Macklem said he offered full support to Federal Reserve Chair Jerome Powell and noted Powell's decision-making was evidence-based amid difficult circumstances. - Powell announced that the Justice Department served subpoenas on the Fed that he described as threatening a criminal indictment. - Powell said the subpoenas related to his congressional testimony about renovations at the Fed's headquarters. - Powell described the probe as part of ongoing pressure from the U.S. administration, and U.S. President Donald Trump has publicly criticized the Fed and urged faster rate cuts. Summary: Macklem's public support highlights cross-border attention to the Fed as it faces a legal inquiry. Undetermined at this time.