US Stocks Plummet, Gold Hits New Highs as DOJ Opens Criminal Probe into Fed Chair Jerome Powell
In a shocking turn of events, US stocks took a nosedive on Monday morning as investors reacted to the news that federal prosecutors had opened a criminal investigation into Federal Reserve Chair Jerome Powell. The Dow futures plummeted over 350 points, with S&P 500 and Nasdaq futures not far behind.
The probe, launched by the Justice Department's Office for the District of Columbia, centers around Powell's June 2025 testimony to Congress about the Federal Reserve's $2.5 billion renovation of its Washington D.C. headquarters. The investigation will review Powell's public statements and examine the Fed's internal spending records, officials briefed on the matter confirmed.
Gold prices surged to record territory as investors flocked to safe havens, with spot prices jumping over 2% to around $4,595 an ounce. US gold futures for February delivery climbed more than 2% to roughly $4,606.
Powell himself confirmed late Sunday that the Justice Department had served the Fed with grand jury subpoenas and warned that prosecutors were threatening a criminal indictment tied to his testimony, calling the move "an unprecedented attack on the central bank."
The Fed chair accused President Trump of using the investigation as an intimidation tactic, saying the threat of prosecution was meant to intimidate policymakers into aligning monetary decisions with the President's demands. Powell stated he had served at the Federal Reserve under four administrations, Republicans and Democrats alike, and carried out his duties without "political fear or favor."
The probe marks a significant escalation in tensions between the Fed and the White House, which have clashed repeatedly over interest rates since Trump returned to office. The $2.5 billion project, currently underway at the Marriner S. Eccles Federal Reserve Board Building, has been the focal point of their disagreements.
While Powell's term as chair expires in May 2026, his seat as a Fed governor runs through January 2028, allowing him to remain at the central bank unless removed for cause. The investigation raises questions about the independence of the Fed and whether it is being politicized by the White House.
The Post has sought comment from the White House and the Justice Department, but so far, none have been forthcoming.
In a shocking turn of events, US stocks took a nosedive on Monday morning as investors reacted to the news that federal prosecutors had opened a criminal investigation into Federal Reserve Chair Jerome Powell. The Dow futures plummeted over 350 points, with S&P 500 and Nasdaq futures not far behind.
The probe, launched by the Justice Department's Office for the District of Columbia, centers around Powell's June 2025 testimony to Congress about the Federal Reserve's $2.5 billion renovation of its Washington D.C. headquarters. The investigation will review Powell's public statements and examine the Fed's internal spending records, officials briefed on the matter confirmed.
Gold prices surged to record territory as investors flocked to safe havens, with spot prices jumping over 2% to around $4,595 an ounce. US gold futures for February delivery climbed more than 2% to roughly $4,606.
Powell himself confirmed late Sunday that the Justice Department had served the Fed with grand jury subpoenas and warned that prosecutors were threatening a criminal indictment tied to his testimony, calling the move "an unprecedented attack on the central bank."
The Fed chair accused President Trump of using the investigation as an intimidation tactic, saying the threat of prosecution was meant to intimidate policymakers into aligning monetary decisions with the President's demands. Powell stated he had served at the Federal Reserve under four administrations, Republicans and Democrats alike, and carried out his duties without "political fear or favor."
The probe marks a significant escalation in tensions between the Fed and the White House, which have clashed repeatedly over interest rates since Trump returned to office. The $2.5 billion project, currently underway at the Marriner S. Eccles Federal Reserve Board Building, has been the focal point of their disagreements.
While Powell's term as chair expires in May 2026, his seat as a Fed governor runs through January 2028, allowing him to remain at the central bank unless removed for cause. The investigation raises questions about the independence of the Fed and whether it is being politicized by the White House.
The Post has sought comment from the White House and the Justice Department, but so far, none have been forthcoming.
US stock market taking a hit just because some dude is getting investigated for testifying before congress 
what's next? gold prices soaring to new heights because people are freaking out lol $4,595 an ounce is insane 
I feel bad for Jerome Powell though, he's already dealing with the stress of interest rates and now this 
the fed chair needs a break from politics, can't they just focus on not crashing the economy? 
how the investigation is targeting the Fed's renovation project... It feels like a big power struggle between the White House and the central bank 
What's going on with the US stock market? 
One minute it's up, next it's down 
like 350 points or something?! 
On a lighter note, has anyone else noticed how awesome gold prices are looking lately? 
Like, who needs stocks when you can invest in shiny metal? 
Just kidding (kind of). Seriously though, it's wild to see the Fed getting involved in this. 
Is this all connected to Trump and the White House drama? 
One thing for sure is that this whole situation has got me feeling super cautious about my investments. 
Who knows what's gonna happen next? 
Only time will tell, I guess... 
gold prices surging - i get it, people want to hide their cash from the chaos, but come on... isn't this just a classic case of market manipulation?