Global Stocks Stagnate as Q4 Earnings Kick Off Amid Trump DOJ Criminal Probe into Fed Chair Powell
Markets hit the snooze button.
As corporate America steps up to the Q4 earnings microphone, global equities are stuck in neutral. The usual opening-day jitters? Maybe. But there's a new headline stealing the spotlight—and it's not from a earnings call.
A Subpoena for the Central Banker
The Department of Justice, under the revived Trump administration, just opened a formal criminal investigation into Federal Reserve Chair Jerome Powell. The specifics are under seal, but the message is clear: the political war on central bank independence has escalated from tweets to indictments.
Traders are left parsing a bizarre new risk matrix. Do you price in earnings misses, supply chain snarls, or the potential arrest of the world's most powerful monetary policymaker? It's a trifecta nobody hedged for.
The Institutional Freeze
Capital is doing what it hates most: sitting still. Major funds have slammed the brakes on big directional bets. Why commit to a narrative when the referee might get handcuffed? The 'Powell Put'—the long-held belief the Fed would backstop markets—now carries a subpoena number.
It's the ultimate volatility dampener: pure, unadulterated confusion.
Where's the Safe Haven?
Gold ticked up. Bonds gyrated. The dollar wobbled. The traditional flight-to-safety playbook looks as outdated as a 2019 economic forecast. When the investigation touches the heart of the financial system itself, where do you run?
Some whispers on trading floors are getting louder. They're not about earnings-per-share. They're about protocols that don't have a headquarters, ledgers that can't be subpoenaed, and a monetary policy written in code, not subject to a change in administration. Just a thought, while the old world ties itself in legal knots.
So, welcome to earnings season. The numbers almost don't matter. The real show is watching the architects of modern finance navigate a minefield where the rules are rewritten by the week. As one syndicate desk head quipped over the squawk box: 'They're investigating the guy who prints the money. Talk about an audit.'
