"U.S. equity futures fell sharply Sunday night after Federal Reserve Chair Jerome Powell confirmed that he is under investigation related to testimony he gave last June concerning the renovation of Federal Reserve buildings. The New York Times report breaking news of the investigation and Powell's subsequent disclosure rattled markets, reviving fears that years of President Donald Trump pressuring the Federal Reserve could now be realized into a direct assault on its independence."
"Futures tied to the Nasdaq 100 led the decline, falling about 0.8%, as interest-rate-sensitive technology stocks bore the brunt of the selloff. S&P 500 futures were down roughly 0.5%, while Dow Jones Industrial Average futures fell about 0.4%, according to late-evening pricing. Investors sought protection in the traditional safe-haven assets. Gold futures rose 1.7% to around $4,578 an ounce, while silver jumped more than 4%, reflecting renewed demand for protection against political and monetary instability."
"After years of largely staying silent while Trump repeatedly mocked and threatened him, Powell appeared to have reached a breaking point, issuing a rare and pointed statement. He wrote that while "No one-certainly not the chair of the Federal Reserve-is above the law," the attack should be seen in the "the broader context of the administration's threats and ongoing pressure.""
U.S. equity futures fell sharply after Federal Reserve Chair Jerome Powell confirmed an investigation related to testimony about renovation of Federal Reserve buildings. Markets reacted with renewed fears that sustained presidential pressure could translate into a direct assault on central bank independence. Technology-heavy Nasdaq futures led the decline while S&P 500 and Dow futures also fell. Investors moved to safe-haven assets: gold rose 1.7% and silver jumped more than 4%, while the U.S. dollar weakened against several major currencies. Powell framed the inquiry as part of broader administration pressure and warned that criminal charges would punish the Fed for setting rates based on public-interest assessments rather than presidential preferences. Economists cautioned that executive co-option of the Fed could risk a self-fulfilling destabilization.
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