President Donald Trump has kicked off a criminal investigation into Federal Reserve boss Jerome Powell, sparking chaos in the markets. The US dollar plunged while gold prices surged, as tensions over the Fed’s independence took a nasty turn.
Dollar Falls as Gold Hits Record High
On Monday, the US dollar dropped 0.36% against major currencies. Meanwhile, gold prices jumped a staggering 1.9%, hitting an eye-watering record of $4,600 per troy ounce.
Goldman Sachs chief economist Jan Hatzius echoed concerns at the 2026 Global Strategy conference, saying the probe “reinforced worries about the Fed’s independence being under fire.”
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Still, Hatzius expressed confidence Powell would keep basing decisions on economic data alone.
Trump’s Ongoing Fed Feud
- In August, Trump unsuccessfully pushed to remove Fed governor Lisa Cook over alleged false mortgage statements.
- In September, he appointed an ally to the Federal Open Market Committee (FOMC) pushing for swifter, deeper rate cuts.
- Trump continues to mock Powell on Truth Social, dubbing him “Jerome ‘Too Late’ Powell” for cautious rate hikes.
- Powell’s current term ends in May, but the spat shows no signs of cooling.
