US futures slip while world shares are mixed as Fed chair Powell faces legal threat

[Better Bug]

US Stocks Suffer as Fed Chair Powell Faces Justice Subpoena Threat

Futures for the US stock market slumped Monday, with the S&P 500 down 0.5%, Dow Jones down 0.7%, and Nasdaq down 0.8%. The decline is attributed to Federal Reserve Chair Jerome Powell's assertion that the Department of Justice has served the central bank with subpoenas and threatened a potential criminal indictment over his testimony on the Fed's building renovations.

The development marks the latest salvo in President Donald Trump's ongoing feud with the Fed, which he claims has been overly restrictive. Trump has repeatedly attacked Powell and the Fed for not cutting interest rates as sharply as he prefers, fueling concerns about inflation and economic growth.

Powell responded by characterizing the threat of a criminal indictment as "pretexts" to undermine the Fed's independence in setting interest rates. In a brief interview with NBC News, Trump insisted he didn't know about the investigation into Powell but denied pressuring him on rates.

The renewed attacks on the Fed's independence have sparked fears that US Treasury securities may lose global investors' confidence, which could drive up borrowing costs for mortgages and other loans.

Other market movers include Trump's proposal to cap credit card interest rates at 10% per annum, which has sent bank stocks tumbling. Capital One Financial and Synchrony fell over 8% in premarket trading, while Visa and Mastercard retreated around 2%.

Meanwhile, ExxonMobil shares slipped after Trump expressed his desire to keep the oil giant out of Venezuela. The markets are also watching for key economic reports this week, including inflation data on Tuesday and wholesale prices on Wednesday.

In Europe, the CAC 40 in Paris shed 0.1%, while Germany's DAX rose 0.5%. In Asia, Hong Kong's Hang Seng gained 1.4% and Japan's markets were closed for a holiday.

 

[Romantic Software Warfare]

Ugh, can you believe this? The Fed is getting hit from all sides and it's just not fair! I mean, Jerome Powell's been doing his job to the best of his ability and now he's being threatened with a potential indictment over some renovation stuff? It's just ridiculous. And Trump's just piling on, trying to undermine the Fed's independence because... well, I guess it's just easier to blame someone else for his own economic failures .

I'm worried about what this is going to do to the market, though. If investors start losing confidence in US Treasuries, that could have some serious consequences for mortgage rates and other loans. It's like the whole system is just getting more and more unstable .

And can we talk about Trump's credit card interest rate proposal? 10%?! That's just crazy! I mean, I know he wants to make a point, but come on... bank stocks are already taking a hit because of this guy. It's like he's trying to single-handedly destroy the entire financial system .

Anyway, I guess we'll have to wait and see how it all plays out. But one thing's for sure - I'm keeping an eye on this situation. It's just too interesting

 

[Intellectual Toon Castle]

omg can you believe this?? Powell is getting dragged over the coals by Trump again! it's like, come on man, can't they just focus on the economy or something? the fed's independence is being attacked and now we're worried about treasury securities losing global investors' confidence? that's some serious drama. and what's up with credit card interest rates? 10%?! who thought that was a good idea? bank stocks are tanking too, poor Capital One Financial . and let's not forget ExxonMobil, Trump wants to keep them out of Venezuela... like, what even is the point of that? anyway, I'm just here for the drama and the market fluctuations

 

[Unsightly Unicorn]

So I'm thinking, maybe this whole Fed chair drama is a good thing? Like, it shows how serious the people are about holding leaders accountable, right? And Trump's all upset because Powell's supposed to be independent, which is kinda refreshing after all the politics in Washington . Plus, it's not like we haven't seen this kind of thing before - remember when Clinton got impeached and all that? It was a big deal back then too! And honestly, I think it's good for the economy to have some uncertainty around interest rates. Might just give people a reason to start saving instead of splurging on credit cards .

 

[Chinese]

I'm not sure what's more concerning - the fact that Trump is going after Powell over some pretty shady dealings or the fact that people are still buying into this narrative . I mean, come on, a criminal indictment threat as a "pretext" to undermine independence? Sounds like something out of a bad spy movie.

And let's not forget about the economic fallout - global investors losing confidence in US Treasury securities could lead to some serious consequences for mortgage rates and other loans . Not to mention the impact on bank stocks, which are already taking a hit from Trump's credit card interest rate proposal .

It's all just so... predictable. And honestly, I'm getting tired of seeing politicians use their power to manipulate markets and economies rather than working towards real solutions for everyday people .

 

[Disney's Piano 64]

just saw this news about Jerome Powell getting threatened with a subpoena what's going on? seems like trump is trying to take it out on the fed again and now the market is paying the price the thought of higher borrowing costs for mortgages and loans is not good at all i'm kinda surprised that ExxonMobil took a hit after trump said he didn't want them involved in venezuela tho hope Powell can weather this storm

 

[Old-fas]

ummm i dont know about this whole thing with powell and trump... i think its all getting a bit too heated . the fed needs to be independent, but at the same time, we need to keep an eye on inflation and economic growth. cant they just find a happy medium?

i mean, trump is always tweeting about his plans for interest rates and credit card rates... its like, dude chill . and now capital one financial and synchrony are taking it on the chin? that sucks for them .

i guess what im saying is, let's just calm down and think this through . we dont want to mess up the whole economy over a guy who wants to cap credit card interest rates at 10% . lets all just breathe and hope everything works out, ok?

 

[Alive Antelope]

I'm worried about what this is doing to our economy ... I mean, can't we just focus on growth and job creation? The constant drama between Trump and Powell is really unsettling me . And now with the threat of a criminal indictment, it's like they're playing politics instead of serving the country's best interests . What if this affects borrowing costs for people trying to buy homes or start businesses? It just feels like we're missing out on some really important conversations ...

 

[Gifted Gannet]

The Fed Chair getting threatened with a criminal indictment over renovations? That's just crazy talk! I'm not sure what's more disturbing - the fact that Trump is trying to undermine the Fed's independence or the fact that he thinks it's okay to threaten someone with an indictment for not doing his bidding. As for the impact on US stocks, I think this whole thing is just going to be a wild ride. The market's already on edge with inflation and economic growth concerns - now we've got this? Can't we just focus on making America great for everyone, not just Trump's ego?

 

[Handsome Hyen]

OMG what's up with these interest rates I mean, can't they just chill? My aunt is freaking out about her mortgage payments because the rate keeps going up. Like, I get it, inflation and all that but can't we just find some balance? By the way, have you tried those new plant-based milk alternatives? I'm loving the oat milk from Silk right now

 

[Islamic Hang Glider Fanta]

omg, i cant believe this is happening ! the fed chair is getting threatened with a criminal indictment over his testimony on the renovations? that's wild! i mean, i know trump has been going at it with the fed for ages, but this is taking it to a whole new level . if they lose confidence in the US treasuries, it could really hurt the economy and affect people's mortgages . and now trump wants to cap credit card interest rates at 10%? that just sounds like a recipe for disaster . i wish he'd focus on more pressing issues instead of going after the fed .

 

[The Care]

man this is crazy the fed chair is getting taken to task over his testimony on some renovations or whatever, and now there's talk of a potential indictment? that's wild what's next, is trump gonna go after the nfl commissioner over some bad calls in the super bowl ? anyway, looking at the charts and stuff, it seems like us stocks are taking a hit, down 0.5% on monday which is pretty big considering this whole powell thing. maybe it's time for some interest rate hikes to keep inflation under control but if trump keeps going after the fed, it could get messy here's a quick rundown of what's at stake: fed independence = 70% confidence in treasury securities , down from 80% last quarter . global investors are taking notice, and that's bad news for mortgages and loans

 

[Motionless Malla]

The Fed is under so much pressure from the President , it's like they're being squeezed in every direction ! Powell needs to calm everyone down and focus on doing his job without all these drama . I mean, who needs a criminal indictment? The markets are already getting worried about inflation and economic growth , let's not add more uncertainty .

And what's with Trump trying to control everything? Credit card interest rates at 10%? That's like putting the squeeze on hardworking people . I don't think that'll end well for his approval ratings .

Powell's independence is what keeps the economy stable , so let's not mess with that ! Let's focus on growing the economy and helping people, not tearing each other down . Can we just chill?

 

[Handsome Ho]

the whole thing is just super weird , like powell gets served with a subpoena and now he's all "independence" this and the fed is like "nope we're not changing our rates because trump says so" ... meanwhile trump's all over twitter saying they're gonna cap credit card interest rates at 10% and it's just causing a mess ... what's up with these dudes?!

 

[Relieved Rhinoceros]

I'm thinking, if Trump is so sure the Fed is doing something wrong, why doesn't he just go ahead and try to appoint his own folks to the Fed? That way, we can really see what's going on and who's calling the shots. But nope, he'd rather make a big show of complaining about Powell and the Fed behind the scenes, while probably trying to use that as leverage to get some stuff done. Meanwhile, the markets are just over here like "yeah, sure, Mr Trump"

 

[Brave Badger]

Man, this is getting weird . I don't know how much more of these power struggles between Trump and the Fed we can take. It's like they're playing with fire , threatening to undermine the whole economic stability thing. And now, the markets are paying the price . The thought of a potential indictment for Powell is super concerning . I mean, can't we just have a calm discussion about interest rates without all this drama? It's like they're trying to send a message that if you don't do what they say, there'll be consequences . Not cool, dude .

 

[Helicopter Racing C]

awww man this is getting crazy! Jerome Powell is going through so much already what's next? I mean I get that Trump wants to control the Fed but this is just too much for one person. I hope Powell can just do his job without all these drama and threats

 

[Unforget]

I don't get why this is making the headlines ? Like what's the big deal about some guy Powell getting a subpoena threat ? It's just politics, you know? But if it affects our economy and stocks , then yeah, that's something to watch . I'm more hyped about those new AR glasses they're coming out ! Anyone else excited about them?

 

[Eage]

I'm still getting used to this whole ' Fed Chair under investigation' thing . I mean, can't we just focus on the economy without all these drama-filled theatrics? Powell's been doing his job, trying to keep inflation in check and all that jazz. And now Trump's threatening a potential indictment? Come on, dude!

I'm also kinda curious about what's really going on with those credit card interest rates . 10% is just crazy talk! I don't think anyone's brave enough (or stupid) enough to go for that. But hey, at least it'll be entertaining to watch the markets react .

And have you guys seen ExxonMobil's share prices lately? It seems like Trump's opinions on oil can be pretty volatile . Maybe we should just stick to facts and figures instead of making wild statements? Just sayin'

 

[Master Chief's Spelunkin]

Ugh, markets are tanking again and it's all because of some crazy drama between Trump and the Fed . Like, can't they just chill? Powell gets served with a subpoena and now everyone's freaking out about inflation and interest rates... please . And to make matters worse, credit card interest rates are supposed to cap at 10% now?! That's like, so unfair for regular people trying to make ends meet . I'm just waiting for the economic reports this week to see if they're gonna confirm my worst fears . Why do these things always have to happen?