Fed probe prompts safe‑haven rally and bank selloff

A reported U.S. Department of Justice criminal probe into Federal Reserve Chair Jerome Powell was linked to increased demand for safe‑haven assets, and markets moved with higher gold and weaker U.S. financial stocks.

A U.S. Department of Justice criminal probe into Federal Reserve Chair Jerome Powell was reported, and that development drew fresh market attention. The report raised questions about the Fed's independence and prompted investors toward safer assets. Gold and other safe‑haven holdings were reported as stronger, which supported gains in Canada’s main stock index. U.S. equities were broadly flat and financial stocks led declines. Key developments: - The U.S. Department of Justice was reported to have opened a criminal probe into Federal Reserve Chair Jerome Powell. - The report was associated with increased demand for safe‑haven assets, including higher gold prices. - Canada's top stock index was reported to have risen, helped by stronger gold. - U.S. equities were reported as broadly flat, with financial stocks leading the downturn. Summary: Markets shifted after the reported DOJ probe, with safe‑haven assets rising and U.S. bank stocks falling. Undetermined at this time.