Stock market declines following investigation into Powell
Stock futures dropped after the DOJ began a criminal investigation into Fed Chair Jerome Powell, escalating tensions between Trump and the Fed, and raising concerns over the Fed's independence.
Stock futures fell Monday
DOJ investigates Fed Chair Powell
Trump pressures Fed to lower rates
Bank stocks lead early losses
Gold futures rise 2%
Upcoming earnings season for banks
Market volatility increases
Stock futures decreased on Monday following the Department of Justice’s criminal investigation into Federal Reserve Chair Jerome Powell, escalating tensions between President Donald Trump and the Federal Reserve.
Futures Market Response to Investigations
Futures on the Dow Jones Industrial Average fell by 347 points, or 0.7%. The S&P 500 futures dropped 0.6%, and Nasdaq-100 futures lost 0.8%. Investors reacted to the increasing confrontation between Trump and the Fed.
Trump’s proposal to limit credit card interest rates to 10% for one year also unsettled the market. Critics believe this plan could restrict lending and ultimately harm consumers and bank profits.
Impact on Bank Stocks and Market Sentiment
Bank stocks were the hardest hit in early trading. Citigroup fell by 4%, while JPMorgan and Bank of America decreased by over 2%. Capital One experienced an 11% drop.
Powell confirmed the criminal investigation related to his Senate Banking Committee testimony on renovations of Fed offices. He views the investigation as an attempt by Trump to sway the Fed’s monetary policy.
Market Context and Future Expectations
Despite past pressures from Trump, the stock market in 2025 remained resilient, with the Fed cutting rates three times as inflation stabilized. However, the Fed is likely to avoid further cuts in the near future as it assesses inflation and economic conditions.
Gold futures, often considered a safe investment against declining Fed independence, increased by 2%. Analysts expect a “risk-off” market sentiment, with declines in the dollar, bonds, and stocks.
Rachel Patel is a senior news editor and journalist specializing in political journalism and digital media. With over seven years of professional experience, she is recognized for her accuracy, source verification, and audience-focused reporting approach.
Rachel earned her M.S. in Journalism & Media Studies from Stanford University (2018), where she developed expertise in media ethics, political communication, and digital storytelling.
Her career has centered on bridging traditional political reporting with the fast-paced world of online journalism. She has contributed to major global media outlets, analyzing how digital platforms — from YouTube and Reddit to TikTok and Bluesky — shape political narratives, influence public opinion, and redefine news consumption.
Now based in Berlin, Germany, Rachel serves as a Senior News Editor at Faharas NET, leading coverage on digital politics, media literacy, and social communication trends in the modern information landscape.
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