Global markets were on edge this Monday, Jan 12, 2026, after the Department of Justice opened a criminal investigation into US Federal Reserve Chair Jerome Powell. Investors from Tokyo to London to Wall Street woke up to jitters in stocks, bonds and currencies.
Futures dipped and safe-haven assets rallied 📉➡️💼 as traders scrambled for answers. The probe marks the first criminal inquiry targeting a Fed chair and raises tough questions: could legal pressures threaten the central bank’s independence? 🤔
Why it matters: The Fed’s ability to set interest rates without political interference is a global cornerstone. If Chair Powell faces legal battles, the ripple effects could reshape monetary policy and market confidence.
What’s next: Eyes will be on Federal Reserve officials and DOJ statements this week. Powell is scheduled to speak at an economic forum, where any mention of the investigation could sway markets again.
For young investors and curious minds, this is a live lesson on how politics, law and finance intersect. Stay informed, stay agile, and keep your portfolios ready for twists! 📊✨
Reference(s):
Global market rattles as criminal probe into US Fed chief opens
cgtn.com
