Criminal investigation into Fed chair Powell has ‘reinforced’ concerns over independence, Goldman Sachs warns, as dollar weakens – as it happened

Goldman Sachs’ chief economist Jan Hatzius has warned this morning that the criminal indictment threat facing Federal Reserve chairman Jerome Powell has reinforced worries that central bank independence is being undermined.Reuters reports that Hatzius told a 2026 Goldman Sachs Global Strategy Conference:“Obviously there are more concerns that Fed independence is going to be under the gun, with the latest news on the criminal investigation into Chair Powell really having reinforced those concerns.”Hatzius added, though, that he expected the Fed to continue to make decisions based on data:“I have no doubt that he (Powell) in his remaining term as chair is going to make decisions based on the economic data and not be influenced one way or the other, cutting more or refusing to cut on the back of data that could push in that direction.”Our US politics liveblog is taking up the coverage of the Federal Reserve, here:Here’s a wrap up….The worsening relations between the US Federal Reserve and the White House have triggered fears that the independence of America’s central bank is being threatened

Paramount to nominate directors to Warner Bros board to vote against Netflix deal

Paramount Skydance plans to nominate directors to Warner Bros Discovery’s (WBD) board to vote against the approval of its deal with Netflix, and filed a lawsuit seeking disclosure of financial information related to the $82.7bn (£61.4bn) agreement.In a letter sent to WBD investors on Monday, Paramount said it would nominate directors for election at the company’s annual meeting, which is usually held in June, to try to derail the deal with Netflix, which was agreed in December.To win what is known as a proxy fight, Paramount will have to convince enough WBD investors to cast their votes in favour of its nominees and replace existing, or new, directors proposed by WBD’s board

Major incident declared as 30,000 homes left without water in Kent and Sussex

A major incident has been declared after 30,000 homes in Kent and Sussex were left without water.People in areas including Tunbridge Wells, Canterbury and Maidstone have been without water for as long as five days.Schools and libraries across Kent and Sussex have closed for the day as they do not have running water. The Queen Victoria hospital in East Grinstead has been forced to carry out some appointments virtually.South East Water blamed the cold weather and Storm Goretti for the supply problems

JD Sports plans to let shoppers buy through AI platforms

JD Sports has said it plans to allow customers to buy its products directly through AI platforms without leaving the apps.The British trainer and sportswear company will allow “one-click purchases” through platforms such as ChatGPT and Microsoft Copilot, as big retailers attempt to keep up with AI-powered shopping.The technology will launch in the US in the coming months, with potential to expand into other regions, the company said.Jetan Chowk, the JD Sports chief technology officer, told PA Media that AI was “the future of how people will shop”.“What we are currently seeing is that customers are regularly using AI apps to research and discover the products they want to buy,” he said

Lending to small businesses and low-income areas must expand, say Labour backbenchers

Senior Labour backbenchers are urging the government to introduce legislation forcing UK banks to expand affordable lending to small businesses and low-income neighbourhoods.The former minister Gareth Thomas has tabled a 10-minute rule bill – a type of private member’s bill – echoing the US Community Reinvestment Act (CRA).Thomas said: “Given the cost of living crisis, we need to unlock far better access to cheap loans for the millions of people on low and middle incomes to help them through the financial emergencies that everyone faces at some point, while also making it easier for talented entrepreneurs to find the affordable finance they need to get their businesses up and running.”Co-sponsors of the legislation include the Labour select committee chairs Meg Hillier, Liam Byrne and Sarah Owen, and the former shadow chancellors Anneliese Dodds and John McDonnell.The Treasury published its own financial exclusion strategy last year, including a commitment to supporting the expansion of credit unions

Justice department opens investigation into Jerome Powell as Trump ramps up campaign against Federal Reserve

The Department of Justice has opened a criminal investigation into Jerome Powell and the Federal Reserve, a significant escalation in Donald Trump’s extraordinary attack on the US central bank.Powell said the Department of Justice had served the Fed with grand jury subpoenas on Friday, threatening a criminal indictment related to his testimony before the Senate banking committee in June last year, regarding renovations to the Fed’s historic office buildings in Washington DC.The US attorney’s office in the District of Columbia has opened a criminal investigation into Powell over the project, and whether Powell lied to Congress about its scope, the New York Times reported on Sunday.Allies of Trump spent months last year accusing the Fed of mishandling the multibillion-dollar renovations. Trump had repeatedly threatened legal action