Morning Business Report: Federal prosecutors open criminal probe into Fed Chair Jerome Powell
Federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell.
(LILAMAX)- Federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell over the central bank’s renovation of its Washington, D.C., headquarters, according to The New York Times. The report says the U.S. Attorney’s Office in the District of Columbia is investigating whether Powell misled Congress about the scope of the renovation project. Powell has confirmed the investigation. Prosecutors have contacted Powell’s staff requesting documents related to the renovations. It is not yet clear whether a grand jury has been convened or if formal subpoenas have been issued. President Donald Trump has repeatedly criticized the cost of the renovations but had no comment on the investigation.
President Trump also announced he is calling for a one-year cap on credit card interest rates at 10 percent, beginning January 20. Lawmakers from both parties have raised concerns about high interest rates on consumer credit. However, banking advocacy groups warned in a joint statement that a 10 percent cap could reduce credit availability and push consumers toward less regulated, higher-cost lending options.
Stocks finished at record highs again Friday. A weaker-than-expected monthly jobs report increased the likelihood that the Federal Reserve could cut interest rates later this year. Boeing is on track to report its highest number of airplane deliveries in a year since 2018. The aerospace company says it plans to ramp up production after scaling back in recent years. Boeing reduced output following two fatal crashes involving its 737 MAX aircraft and a midair door plug blowout on one of its planes in early 2024.
Low-cost airline Allegiant announced plans to buy Sun Country Airlines for $1.5 billion. If approved by the Trump administration, the combined airline will operate under the Allegiant brand.The new airline would have about 195 aircraft in its fleet and serve roughly 175 cities across more than 650 routes.
