Stocks wobble as Trump-Fed feud deepens

U.S. equity futures and the dollar slipped after Federal Reserve Chair Jerome Powell said the Trump administration threatened him with a criminal indictment and served grand jury subpoenas over his Congressional testimony, prompting investor concern about central bank independence.

Federal Reserve Chair Jerome Powell said the Trump administration threatened him with a criminal indictment and that grand jury subpoenas were served over his Congressional testimony about a Fed building renovation project. The announcement coincided with weaker U.S. equity futures and a softer dollar in Asian trading. The developments have prompted market attention because they touch on central bank independence. Key points: - Powell reported a threat of criminal indictment and the service of grand jury subpoenas related to his congressional testimony on a Fed renovation project. - S&P 500 futures fell about 0.5% and European futures slipped about 0.1%, while the dollar was roughly 0.2% lower against major peers; 10-year Treasury futures implied a yield near 4.15%. - Gold reached a record above $4,600 an ounce, and fed fund futures showed a small increase in expected rate cuts this year. - Reuters described the episode as a notable escalation in an existing dispute between Powell and President Donald Trump. Summary: Markets reacted with softer equities and a weaker dollar after Powell's statement, and safe-haven assets like gold rose. The reporting framed the episode as an escalation in a longer-running dispute between the Fed chair and the U.S. administration. Undetermined at this time.