US Stock Futures Decline After Powell Announces Criminal Investigation
US stock futures declined significantly in late Sunday trading after Federal Reserve Chair Jerome Powell announced he is under criminal investigation. Dow futures fell nearly 200 points, while S&P 500 and Nasdaq futures also posted losses. Powell stated the investigation relates to the Fed setting interest rates based on public interest rather than Trump's preferences. With Powell's tenure ending May 2026, three potential successors have been identified: Kevin Hassett, Kevin Warsh, and Christopher Waller.
*this image is generated using AI for illustrative purposes only.
US stock futures posted significant declines in late Sunday trading after Federal Reserve Chair Jerome Powell announced he is under criminal investigation. The announcement sent shockwaves through financial markets, with major indices futures falling sharply from their opening levels.
Market Response to Powell's Announcement
The market reaction was swift and pronounced across all major indices. The following table shows the futures performance following Powell's statement:
| Index: | Movement |
|---|---|
| Dow Futures: | Down nearly 200 points |
| S&P 500 Futures: | Down 30 points |
| Nasdaq Futures: | Down nearly 150 points |
The futures had opened little changed after posting weekly advances, but quickly turned negative following the Federal Reserve Chair's video message.
Powell's Statement and Investigation Details
In a video message posted on the Federal Reserve's official handle on "X", Powell explained that the criminal investigation was initiated as a result of the Fed's approach to interest rate policy. He stated that the probe stems from the Fed setting interest rates based on what they consider their "best assessment of what will serve the public" rather than following the preferences of President Trump.
This development highlights the ongoing tension between the Federal Reserve's independence and political pressures from the executive branch regarding monetary policy decisions.
Succession Planning Underway
With Powell's tenure as Fed Chair scheduled to end in May 2026, the Trump administration has already begun the process of identifying potential successors. According to reports, interviews have been conducted and the list has been narrowed down to three candidates:
| Candidate: | Current Position |
|---|---|
| Kevin Hassett: | White House National Economic Council Director |
| Kevin Warsh: | Former Fed Governor |
| Christopher Waller: | Current Fed Governor (Trump nominee) |
The succession process appears to be moving forward despite the current controversy surrounding Powell's investigation.
Market Implications
The announcement comes at a critical time for financial markets, with investors closely monitoring Federal Reserve policy decisions and their potential impact on economic conditions. The criminal investigation adds an unprecedented element of uncertainty to monetary policy expectations and could influence market sentiment in the coming sessions.
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