New Pressure on the Federal Reserve Drives Down the Dollar, US Bonds, and Stocks, While Pushing Gold and Silver to All-Time Highs

Market Turmoil Follows Federal Reserve Subpoena News

At the start of trading, the US dollar showed initial strength, with Japanese markets closed for a holiday. However, financial markets were shaken after reports emerged that the US Justice Department had issued grand jury subpoenas to the Federal Reserve on Friday, related to renovations at the Fed’s main offices. In response, Federal Reserve Chair Powell released a brief statement, firmly denying the allegations and describing them as a mere excuse for criticism of the central bank’s interest rate decisions.

Following these revelations, investors began selling off the dollar, US government bonds, and stocks, resulting in a steeper yield curve. This unexpected turn of events disrupted the anticipated rebound of the dollar, which had been expected to continue recovering after its decline from late November to late December.