US Stock Futures Fall as the Fed Is Threatened by the Dollar – Asia Market Wrap
US stock futures dipped and the Dollar sank on concerns about the Fed’s independence after Chair Powell stated that threats of a criminal prosecution were a result of the central bank’s interest rate policies.
Futures on the S&P 500 Index fell as much as 0.6% after Powell revealed the Fed has received grand jury subpoenas from the Justice Department about ongoing renovations to its headquarters. Gold rose by up to 2%, setting a new high, while the Swiss Franc, viewed as a safe haven, climbed by up to 0.5%.
The possibility of a criminal indictment by the Trump administration escalates the president’s dispute with the Fed over the pace of rate decreases. Trump has consistently advocated for severe cutbacks, even raising the prospect of dismissing Powell.
Oil saw its highest two-day increase since October as rising protests in Iran threatened supply from OPEC’s fourth-largest member.
Brent traded above $63 per barrel after rising nearly 6% on Thursday and Friday, while West Texas Intermediate hovered around $59. Trump stated that the US is closely monitoring the protests in Iran and considering potential alternatives as the Islamic Republic enters its third week of national protests, the largest since 2022.
