The Justice Department escalated its scrutiny on Friday by issuing grand jury subpoenas to the Federal Reserve. The move signals a potential criminal indictment related to recent testimony from the central bank's leadership regarding an internal renovation initiative.

The subpoenas target communications and documentation surrounding statements made last summer about the central bank's capital project. This legal action marks a significant escalation in oversight of the nation's monetary authority.

Such developments carry weight for financial markets. Uncertainty surrounding Fed leadership and internal governance can influence policy decisions, which in turn affects broader market conditions and investor confidence in central banking institutions.