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Market Turmoil: Investors React to Trump's Pressure on Fed Chair Powell

KVIA•Monday, January 12, 2026 at 11:56 AM•CNN Newsource

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The financial markets are experiencing a significant downturn as investors respond to the Trump administration's criminal investigation of Federal Reserve Chair Jerome Powell. On Monday, stock futures fell, with the Dow down 350 points, and the US dollar weakened against major currencies, dropping 0.4%. This situation has led to a rise in bond yields, indicating concerns over the Fed's independence and its implications for monetary policy. Historically, threats to the Fed's autonomy have prompted investors to retreat from American assets, reminiscent of the 'sell America' trend seen in 2025. As a result, precious metals like gold and silver have surged, reflecting a shift towards safer investments amidst economic uncertainty.

Key Details: • Dow futures decreased by 350 points, or 0.7%, on Monday morning. • The US dollar index fell by 0.4%, indicating a weakened dollar. • The benchmark 10-year bond yield rose to just under 4.2%, nearing a one-month high. • Gold prices surged 2%, reaching record highs above $4,600 per troy ounce. • Investors are advised to consider safer assets like gold and silver amid market volatility.

economy trump investments federal-reserve stock-market

People & Organizations

Donald TrumpFederal ReserveJerome PowellKrishna GuhaEvercore ISI

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