Investors anxious as fight for the Fed intensifies

A Justice Department probe involving the Federal Reserve was disclosed by Chair Jerome Powell, who said he faced a threat of indictment; markets reacted modestly and observers raised concerns about the Fed's independence.

Federal Reserve Chair Jerome Powell disclosed a Justice Department investigation tied to a Fed building renovation and said he had been threatened with possible criminal indictment, calling the probe a pretext to influence Fed policy. President Donald Trump said he had no knowledge of the Justice Department's actions and renewed criticism of the Fed's pace on rate cuts. Investors and market observers noted modest market moves and highlighted concerns about the implications for the Fed's institutional independence. Known details: - Powell disclosed a Justice Department probe and said he had been threatened with possible criminal indictment related to a building renovation, describing the action as a pretext to influence Fed policy, as reported. - President Trump said he had no knowledge of the Justice Department's actions and renewed public criticism of the Fed's approach to interest rates. - Markets showed modest reactions: the U.S. dollar fell slightly, gold reached a record high, and U.S. stock futures declined. - Next procedural or legal steps were not stated. Undetermined at this time. Summary: The disclosures and Powell's response have increased investor concern about potential pressure on the Fed and prompted modest market moves. Undetermined at this time.