March S&P 500 E-Mini futures (ESH26) are down -0.64%, and March Nasdaq 100 E-Mini futures (NQH26) are down -0.82% this morning as sentiment took a hit amid escalating tensions between the Trump administration and the Federal Reserve.
The Fed disclosed it had received grand jury subpoenas on Friday, threatening a criminal indictment related to Chair Jerome Powell’s Senate testimony last June. The testimony partly addressed a multiyear renovation project at the Fed’s headquarters in Washington, D.C., which U.S. President Donald Trump has criticized. “This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Mr. Powell said in a statement on Sunday. He added that “the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” The U.S. government’s move raised concerns over central bank independence.
