US equity futures fell and the dollar weakened after Fed Chair Jerome Powell said threats of a criminal indictment were a consequence of the central bank’s interest-rate policies. S&P 500 and Nasdaq 100 futures moved lower as Powell said the Fed had been served grand jury subpoenas linked to renovations of its headquarters, framing the move as political retaliation tied to monetary decisions. Haven assets benefited, with gold jumping to a fresh record and the Swiss franc strengthening, while Treasuries edged lower and yields rose modestly.
The episode marks an escalation in tensions between the Trump administration and the Fed at a time when policymakers have already signalled caution on further rate cuts. Officials have stressed the need for more data after delivering a third consecutive cut last month, and several banks have pushed expectations for additional easing into later 2026 following firmer US jobs data. The uncertainty weighed on the dollar, which weakened against most major peers, and left markets focused on the implications of political pressure on monetary policy decisions.
Asian equities were more resilient, supported by a rally in regional technology stocks and a softer dollar. The MSCI Asia Pacific ex-Japan index rose, led by Taiwan and South Korea, while major Chinese platforms, including Alibaba and Tencent, contributed to gains. In commodities, oil extended recent gains as protests in Iran raised supply concerns, adding to haven demand already supporting precious metals.
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S&P 500 futures: -0.5%
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Nasdaq 100 futures: -0.8%
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Bitcoin: +1.2% to ~91,680
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Gold: +1.5% to ~4,577/oz
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Brent crude: +0.3% to ~63.50/bbl
