US Stocks Close Higher
The Dow Jones Industrial Average rose 0.17%, or 86.13 points, ending at 49,590.20. The Nasdaq advanced 0.26%, or 62.56 points, closing at 23,733.90, while the S&P 500 gained 0.16%, or 10.99 points, to settle at 6,977.27.
The Volatility Index (VIX), commonly referred to as the "fear index," jumped 4.35% to 15.12. Markets, which opened lower amid concerns about the Fed’s autonomy, ultimately finished the day on a stronger note.
Federal Reserve Chair Jerome Powell revealed that the Justice Department had issued the Fed a grand jury subpoena on Friday. Powell stated he had received a threat of criminal indictment, stressing that "this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.”
Although the investigation was initiated over a $2.5 billion renovation project at the Fed’s headquarters, Powell suggested that the threat of charges is primarily linked to monetary policy decisions, emphasizing that he has fulfilled his responsibilities independently of political influence.
Market analysts described the development as a significant escalation in President Trump’s attempts to pressure the Fed into lowering interest rates.
Former officials from past US administrations, including three ex-Fed chairmen, underscored the critical importance of the central bank’s independence for maintaining economic stability.
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