A surge in Japanese shares led Asia higher on Tuesday amid investor bullishness over all things AI, while the cloud of uncertainty over Federal Reserve independence favoured gold even as it weighed on the dollar.
The dollar held to its losses on Tuesday after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, a move that threatens the central bank's independence and faith in U.S. assets.
* Dollar on the back foot as worries about Fed independence weigh. * Trump administration probe of Fed's Powell sparks pushback. * Yen falls to one-year low as markets weigh outcome of potential snap election in Japan. By Rae Wee.
Federal Reserve ?Bank of New York ?President John Williams ?said on ?Monday ?that the central bank ?does not ?face any near-term pressure ?to change ?the ?stance of monetary policy. Monetary policy is "in a ?good place," Williams told reporters.
Federal Reserve Bank of New York ?President John Williams ?said on Monday ?the relatively ?calm market ?pricing amid the political ?tumult ?around the central bank reflects the ?uncertainty ?over ?how events will play out.
Jerome Powell, head of the U.S. Federal Reserve, said on Sunday the Justice Department has opened a criminal investigation against him for allegedly misleading Congress about a building renovation project at the central bank's headquarters.
Federal Reserve Bank of New York President John Williams said Monday he expects a healthy economy in 2026 and indicated he sees no near-term reason to cut interest rates.
Jerome Powell, head of the U.S. Federal Reserve, said on Sunday the Justice Department has opened a criminal investigation against him for allegedly misleading Congress about a building renovation project at the central bank's headquarters.
Federal Reserve Bank of New York President John Williams said Monday he expects a healthy economy in 2026 and indicated he sees no near-term reason to cut interest rates.
* Major Wall Street indexes close at record highs from lower start. * Powell accuses government of using legal system against Fed. * Dollar loses its 'New Year bounce' * Gold hits record $4,600 an ounce, oil hits 7-week high. By Isla Binnie.
The top Republican in the U.S. Senate acknowledged on Monday that the Trump administration's threat to indict Federal Reserve Chair Jerome Powell could make it harder for Congress to confirm President Donald Trump's nominees for the U.S. central bank, after two Republican lawmakers threatened to block Fed nominees over the?action.
Investors on Monday brushed aside the dramatic news of the Trump administration's threat to criminally indict Fed Chair Jerome Powell, lifting the S&P 500 to an all-time high, while precious metals also soared to new peaks.
* Banks argue cap would limit credit access, harm economy. * Financial groups warn cap could lead to higher fees, reduced rewards. * Trump's proposal lacks details, may need congressional action. * Subprime borrowers face hardest impact from proposed cap. * Morningstar analyst doubts cap implementation, warns of profitability issues. By Hannah Lang and Douglas Gillison.
BlackRock Inc (BLK): * BLACKROCK'S (BLK) ?RICK ?RIEDER: THINK ?THAT ?FED ?SEAT IS INDEPENDENT -CNBC ?INTERVIEW. * ?BLACKROCK'S RICK RIEDER: ?STORIES ?ON ?MEETING WITH TRUMP ?ON FED ROLE ARE REASONABLY ACCURATE. * ?BLACKROCK ?CIO RICK ?RIEDER: FED HAS TO GET THE ?INTEREST RATE DOWN TO 3% -CNBC Further ?company coverage:
Most stocks and currencies in
resources-rich Latin America were higher on Monday, tracking
gains in commodity ?prices, while investors sold the dollar after
the Trump administration's threat ...
* DOJ sends subpoenas to Fed over building project. * Inflation data due later this week. * 3-year, 10-year auctions set for Monday. By Chuck Mikolajczak.
A growing number of Republicans in Congress expressed concern on Monday about the Trump administration's threat to indict Federal Reserve Chair Jerome Powell, with two senators?threatening?to retaliate by blocking President Donald Trump's central bank nominees and a third calling?for the federal probe to end quickly.
U.S. House of Representatives Speaker Mike Johnson on Monday said he ?would not try ?to stop a Department of ?Justice probe into ?Federal ?Reserve Chair Jerome Powell that the ?Fed ?chief has called a pretext for ?the Trump administration ?to ?gain sway over the central bank's interest-rate setting. "We're going ?to let the investigation play out," Johnson told reporters.
U.S. Treasury Secretary ?Scott Bessent told ?President Donald ?Trump ?on ?Sunday that ?the ?federal probe into Federal ?Reserve ?Chair ?Jerome Powell "made a mess" ?and could be bad for ?financial ?markets, Axios ?reported on Monday, citing two sources.
U.S. President Donald Trump did not direct ?Justice Department officials ?to investigate Federal Reserve ?Chair Jerome ?Powell, ?White House press secretary Karoline ?Leavitt ?said on Monday.
Brazil's Treasury said on Monday it expects gross ?public debt to rise ?to 83.6% of ?gross domestic product ?this year ?from 79.3% in 2025, ?remaining ?on an upward trajectory through 2032, when ?it ?is ?forecast to reach 88.6% of output.
* Canadian dollar gains 0.3% against the greenback. * Trades in a range of 1.3868 to 1.3917. * Price of oil increases 0.2% * Bond yields edge up across the curve. By Fergal Smith. The Canadian dollar clawed back some recent declines against ?its U.S. counterpart on Monday as increased concerns about the independence of the Federal Reserve weighed ?on the greenback.
The top Republican in the U.S. Senate acknowledged on Monday that the Trump administration's threat to indict Federal Reserve Chair Jerome Powell could make it harder for Congress to confirm President Donald Trump's nominees for the U.S. central bank, after two Republican lawmakers threatened to block Fed nominees over the?action.
* Many Republicans fear probe undermines Fed's independence. * Some Republicans plan to block Trump's Fed nominees. * Investigation impacts markets; gold rises, S&P 500 fluctuates. By David Morgan. WASHINGTON, Jan 12 - The top Republican in the U.S. Senate acknowledged on Monday that the Trump administration's. threat to indict.
Bank of France Governor Francois Villeroy de Galhau offered on Monday his ?support to his embattled U.S. counterpart ?Jerome Powell, describing the ?head of the U.S. ?Federal Reserve ?as a "model of integrity".
* Indexes: Dow down 0.1%, S&P 500 flat, Nasdaq up 0.2% * Financial stocks fall as Trump calls for cap on credit card rate. By Medha Singh and Pranav Kashyap. The S&P 500 paused near record highs on Monday as gains in artificial intelligence stocks and Walmart (WMT) helped the index recover from an early slide driven by concerns over the Federal Reserve's independence.
U.S. Senator Lisa Murkowski on Monday threw her support behind fellow Republican Thom Tillis' plan to block President Donald Trump's ?Fed nominees after the Justice Department over the weekend threatened to indict ?Fed chairman Jerome Powell.
U.S. Senator Kevin Cramer, ?a Republican ?member of the ?Senate ?Banking ?Committee and a critic ?of ?Federal Reserve Chairman ?Jerome ?Powell, ?called on Monday for a quick ?end to a federal investigation ?of ?the central bank chief, citing ?the need to restore confidence in the institution.
U.S. Senator Lisa Murkowski on Monday threw her support behind fellow Republican Thom Tillis' plan to block President Donald Trump's Fed nominees after the Justice Department ?over the weekend threatened to indict Fed chairman Jerome Powell.
Canada's main stock index rose to a fresh high on Monday, lifted largely by gold miners, as a Trump administration probe into Federal Reserve Chair Jerome Powell raised concerns ?over the central bank's independence and fueled safe-haven demand for precious metals.
U.S. Senator Lisa Murkowski on Monday backed ?fellow Republican ?Thom Tillis' plan to ?block President Donald ?Trump's ?Fed nominees after ?the ?Justice Department over the weekend threatened ?to ?indict ?Fed chairman Jerome Powell.
* DOJ sends subpoenas to Fed over building project. * Inflation data due later this week. * 3-year, 10-year auctions set for Monday. By Chuck Mikolajczak.
The past three heads of the U.S. Federal Reserve on Monday joined with other former federal government economic policy leaders in condemning the Trump ?administration's criminal probe of Fed Chair Jerome Powell, likening it ?to the interference with central bank independence more ?often seen in emerging market countries ?with "weak institutions."
The past three heads of the U.S. Federal Reserve on Monday joined with other former federal government economic policy leaders in condemning the Trump administration's ?criminal probe of Fed Chair Jerome Powell, likening it ?to the interference with central bank independence more ?often seen in emerging market countries ?with "weak institutions."
* Indexes down: Dow 0.86%, S&P 500 0.24%, Nasdaq 0.58% * Financial stocks fall as Trump calls for cap on credit card rate. * Gold-linked stocks rise after bullion prices cross $4,600/ounce. By Medha Singh and Pranav Kashyap.
Wall Street's main indexes opened lower on Monday after ?the Trump administration renewed ?its attacks on ?the Federal Reserve, ?stoking ?fresh worries about the ?central bank's ?independence, while a proposed one-year ?cap on ?credit-card ?interest rates weighed on financial stocks.
Wall Street's main indexes opened lower on Monday after ?the Trump administration ?renewed its attacks on the ?Federal Reserve, ?stoking ?fresh worries about the central ?bank's independence, ?while a proposed one-year cap ?on credit-card ?interest ?rates weighed on financial stocks.
* Klingbeil emphasizes importance of central bank independence. * G7+ discusses reducing reliance on Chinese rare earths. * Klingbeil seeks cooperation amid growing U.S.-Europe differences. By Maria Martinez.
* Futures down: Dow 0.6%, S&P 500 0.5%, Nasdaq 0.7% * Financial stocks fall as Trump calls for cap on credit card rate. * Gold-linked stocks rise after bullion prices cross $4,600/ounce. By Medha Singh and Pranav Kashyap.
German Finance Minister Lars Klingbeil ?on Monday ?said that central ?bank independence ?was a "clear ?line" for ?him, when ?asked about the ?U.S. ?Justice Department's ?probe into Federal Reserve Chair Jerome ?Powell. "We value independence of central banks...
U.S. President Donald Trump will interview ?BlackRock Inc's chief ?bond investment manager Rick ?Rieder on ?Thursday ?as a candidate ?to lead ?the Federal Reserve, Fox Business ?Network ?reported ?on Monday, citing unidentified administration sources.
U.S. President Donald Trump will interview BlackRock (BLK) ?Inc's chief ?bond investment manager Rick ?Rieder on ?Thursday ?as a candidate ?to lead the ?Federal Reserve, Fox Business ?Network ?reported ?on Monday, citing unidentified administration sources.
White House economic adviser Kevin Hassett said on Monday he was not involved in conversations with the Justice Department about its probe into Federal Reserve Chair ?Jerome Powell and did not know whether President Donald Trump had approved it. "I've not been ?involved in conversations with the Justice Department about that.
White House economic adviser Kevin Hassett said on Monday he ?was not involved in conversations ?with the Justice Department ?about its probe ?into Federal ?Reserve Chair Jerome Powell. "I've not ?been involved ?in conversations with the Justice Department about ?that.
* Futures down: Dow 0.71%, S&P 500 0.57%, Nasdaq 0.79% * Financial stocks fall as Trump calls for cap on credit card rate. * Gold-linked stocks rise after bullion prices cross $4,600/ounce. By Medha Singh and Pranav Kashyap.
A proposed one-year cap on credit card interest rates backed by U.S. President Donald Trump could reduce borrowing costs for some consumers but also limit credit availability, pressure bank profits and reshape the economics of consumer lending.
A proposed one-year cap on credit card interest rates backed by U.S. President Donald Trump could reduce borrowing costs for some consumers but also limit credit availability, pressure bank profits and reshape the economics of consumer lending.
* German 10-year yield down just over 1 basis point at 2.81% * Gap between US and German 10-year yields largest since November at 138 bps. German bond yields slipped on Monday while U.S. Treasury yields rose after the Trump administration threatened Fed. Chair Jerome Powell. with a criminal indictment, raising investor fears over the independence of the world's top ?central bank.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Log In Required
Publication Date