Powell Vows to Resist Trump Pressure as Criminal Probe Launched
Powell said on Sunday that federal prosecutors have opened a criminal investigation related to his Senate Banking Committee testimony on the renovation of Fed office buildings. Powell added that the investigation was another attempt by Trump to influence the central bank’s monetary policy and he would not bow to the pressure. His term as chair is up in May.
Former Fed Officials Rally Behind Powell, Condemn ‘Unprecedented’ Attack
Meanwhile, former officials said Trump is using ‘prosecutorial attacks’ to undermine the Fed. “The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence,” a statement backed by more than a dozen signatories said.
Gold (XAUUSD), which is seen as a hedge against diminishing Fed independence, jumped more than 2%. Investors fear a political Fed would be hesitant to snuff out resurgent inflation.
Consumer Staples Lead Gains While Financials Tumble on Trump’s Credit Card Cap Threat
Seven out of 11 sectors are edging higher on Monday, with the group led by Consumer Staples (+1.20%), followed by Materials (+0.78%) and Industrials (+0.49%).
The biggest loser is the financial sector, down 1.03%. Bank stocks drove this sector lower, including Citigroup down 3%. JPMorgan and Bank of America were off by more than 1%. Capital One shares slid 6%. Bank stocks were also capped by President Trump’s call for credit card rates to be capped at 10% for one year.
Walmart Surges on Nasdaq-100 Addition; Exxon Slides on Venezuela Threats
Story stocks include Walmart, which rose 3% after Nasdaq said the retailer would join the Nasdaq-100 index later this month. The stock could see more demand after joining the index, which is tracked by the popular Invesco QQQ Trust ETF.