FTSE 100 slips as DOJ opens criminal probe into Fed chair Powell

FTSE 100 and other European stocks fell at the London open after Federal Reserve chair Jerome Powell said the Department of Justice has opened a criminal investigation related to his congressional testimony; the dollar weakened against the pound.

Markets in London opened lower after an upbeat start to 2026. Federal Reserve chair Jerome Powell said on Sunday that the Department of Justice is investigating him. He said the Fed was served with subpoenas and faced the threat of a criminal indictment over testimony about renovations to Federal Reserve buildings. Powell described the probe as unprecedented, and President Donald Trump denied knowledge of the investigation while making critical remarks about Powell in a television interview. Key points: - Jerome Powell announced a DOJ criminal investigation and said subpoenas were served related to his Senate testimony on Fed building renovations. - UK and European equities, including the FTSE 100, slipped at the opening bell after the announcement. - The dollar fell about 0.4% against the pound and the dollar index was down roughly 0.3%. Summary: Officials announced a Department of Justice criminal probe into Powell's testimony and said subpoenas have been issued. Markets reacted with lower UK and European equity openings and a softer dollar. Undetermined at this time.