The U.S. dollar fell about 0.2% after Federal Reserve Chair Jerome Powell said the central bank could face criminal subpoenas tied to its interest‑rate decisions.
Why the Dollar Fell
Powell warned that the Justice Department had issued grand‑jury subpoenas that could lead to an indictment if the Fed’s policy moves are seen as politically driven. Investors reacted by pulling back from the dollar, fearing the Fed might lose its independence.
Impact on Other Assets
- Gold: Prices rose up to 2% as investors sought a safe haven.
- Swiss franc: The franc, another safe‑haven currency, gained about 0.5%.
- U.S. stock futures: Futures slipped, reflecting the uncertainty.
U.S. Jobs Data and Stock Rally
Earlier, a modest jobs report showed slightly fewer new hires than expected and the unemployment rate fell to 4.4%. The data helped the S&P 500 close at a record high, lifting global equities.
Asian Markets Follow the Lead
Australian and South Korean stocks rose, and Hong Kong index futures were higher, tracking the U.S. market’s gains. Japan’s markets were closed for a holiday.
Geopolitical Tensions Keep Markets Cautious
Protests in Iran have raised concerns about oil supply, while unresolved U.S. tariff issues and other global hotspots add layers of risk. Yet, markets have remained relatively calm.
Looking Ahead
- Fed officials, including New York Fed President John Williams, will speak later this week, potentially shaping expectations for future rate cuts.
- Analysts from major banks have pushed back on earlier predictions for multiple Fed rate cuts in 2026 after the latest jobs data.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.