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Scotiabank Says Markets Rebel Against Trump Administration's Latest Assault on the Federal Reserve

BY MT Newswires | ECONOMIC | 08:10 AM EST

08:10 AM EST, 01/12/2026 (MT Newswires) -- Markets are rebelling early Monday against the President Donald Trump administration's attack on Chair Jerome Powell and the Federal Reserve, said Scotiabank.

Gold is up by about US$75/oz to nearly US$4,600, noted the bank.

Longer-end United States Treasury yields are punching higher with the 10-year up 3bps and 30-year up 4bps, Scotiabank added. The US dollar (USD) is broadly weaker against major crosses.

Cryptocurrencies are hardly serving as a hedge against political meddling in the US dollar, as they're mostly down as well, it pointed out. S&P equity futures are down by about -0.75%.

The issue is the move by the Trump administration's Department of Justice under Pam Bondi to serve a grand jury subpoena that threatens a criminal indictment of Chair Powell for what he allegedly said about HQ renovations during his testimony before Congress in June, acording to Scotiabank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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