U.S. stock futures plunged Sunday night following news of an investigation into Federal Reserve Chair Jerome Powell. The probe, linked to Powell's June testimony regarding Federal Reserve building renovations, sparked market anxiety. Nasdaq 100 futures led the decline, dropping approximately 0.8%. S&P 500 futures decreased by about 0.5%, while Dow Jones Industrial Average futures fell roughly 0.4%.
The New York Times reported the investigation, prompting Powell to disclose the matter. Investors reacted by flocking to safe-haven assets. Gold futures surged 1.7% to around $4,578 an ounce. Silver prices jumped over 4%. The U.S. dollar weakened against the Swiss franc and Japanese yen.
Technology stocks, sensitive to interest rate changes, experienced the most significant selloff. The market's reaction reflects renewed fears that political pressure, reminiscent of President Trump's past criticisms, could compromise the Fed's independence.
Trump repeatedly criticized and threatened the Federal Reserve during his presidency. The investigation's outcome and the Fed's response will be closely monitored by investors.
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A Justice Department criminal inquiry into Federal Reserve Chairman Jerome Powell is drawing criticism from Congress, potentially jeopardizing President Trump's ability to appoint a new Fed leader. The investigation, related to Powell's testimony on Fed headquarters renovations, is viewed by some, including Senator Tillis, as an attack on the Fed's independence, with Tillis vowing to block any Fed nominee until the matter is resolved. The probe comes as Powell's term nears expiration and amid Trump's repeated calls for lower interest rates.
Federal Reserve Chairman Jerome Powell has accused the Justice Department, under the Trump administration, of launching a politically motivated criminal probe into his Senate testimony after the Fed declined to lower interest rates as requested by the President. Powell maintains the investigation is an attack on the Fed's independence, asserting that monetary policy decisions should be based on economic conditions, not political pressure, and that he will continue to fulfill his duties with integrity. The Justice Department has not yet issued a public response.
A Justice Department criminal inquiry into Federal Reserve Chairman Jerome Powell is drawing criticism from Congress, potentially jeopardizing President Trump's ability to appoint a new Fed leader. The investigation, related to Powell's testimony on Fed headquarters renovations, is viewed by some, including Senator Tillis, as an attack on the Fed's independence, with Tillis vowing to block any Fed nominee until the matter is resolved.
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