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News Items is “the most valuable newsletter out there.” — Peggy Noonan.
1. U.S. prosecutors are investigating Federal Reserve Chair Jerome Powell over his testimony last summer about the central bank’s building renovation project, according to government officials with knowledge of the matter. The Fed received grand jury subpoenas from the Justice Department on Friday that threaten a criminal indictment, the Fed chair said in a statement. In an extraordinary video statement Sunday night, Powell called the investigation a pretext as part of President Trump’s ongoing campaign to pressure the Fed to lower interest rates, and end the independence of the central bank. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said in the video. (Sources: wsj.com, federalreserve.gov)
2. Gold rose to a record high and the dollar weakened earlier today after US prosecutors launched a criminal investigation into Federal Reserve chair Jay Powell, stoking concerns about the central bank’s independence. The metal climbed as much as 2 per cent to $4,600 a troy ounce, while the dollar weakened 0.4 per cent against a basket of major currencies. Futures tracking US stocks also declined, with those of the S&P 500 down 0.6 per cent and the Nasdaq 100 shedding 0.8 per cent. The yield on the 10-year Treasury, which moves inversely to the price, climbed 0.02 percentage points to 4.19 per cent. (Source: ft.com)
3. Iran’s security forces are using lethal force against protesters nationwide, informed sources told Iran International, with preliminary estimates pointing to mass casualties as a sweeping crackdown unfolds amid a near-total internet shutdown. Footage sent to Iran International from Kahrizak, south of Tehran, shows several dead bodies in body bags. According to eyewitness accounts accompanying the videos, dozens of bodies are visible at the site, with additional bodies reportedly located in another nearby industrial shed. A series of videos obtained by @Vahid from Tehran’s Kahrizak forensic center show rows of bodies reportedly transported by pickup trucks after the January 8 crackdown on Iran protests. In one clip, an on-screen label refers to “photo number … out of 250,” suggesting the scale of fatalities. (Source: iranintl.com)
4. Iran’s Foreign Minister said security forces have “full control” of the country after two weeks of ongoing upheaval, accusing Israel and the US of fomenting the nationwide protests in which hundreds of people have been killed. Abbas Araghchi repeated claims by the Iranian government that “rioters and terrorists” had killed police and civilians and destroyed public property using “daesh-style violence,” referring to the Arabic acronym for Islamic State. The demonstrations have continued into Monday. “We have many pieces of evidence which show interference by the US and Israel in this terrorist war,” Araghchi said in an interview to state TV, adding “Israel is directly responsible, and also Americans through their remarks by promoting violence. (Source: bloomberg.com)
