What is the Jerome Powell investigation about?

US media report that the Justice Department issued grand jury subpoenas to the Federal Reserve and is threatening a criminal indictment against Chair Jerome Powell. The probe’s details are not public. No charges have been filed. The headline risk centers on Fed independence and whether policy guidance loses influence while the legal process unfolds.

How could this affect the interest rate outlook for 2024-2025?

Markets may price a wider range of rate paths. The base case is unchanged data-dependent policy. The risk case is a more cautious tone that delays rate cuts or raises term premia. Either path can lift volatility around key releases like CPI and payrolls, affecting bond duration and equity valuation multiples.

Why does this matter for investors in Switzerland?

Policy uncertainty in the US often boosts demand for CHF and gold. A stronger franc can weigh on Swiss exporters and reduce imported inflation, which matters for the SNB. Global risk premia can also nudge local borrowing costs higher. Swiss portfolios should review currency hedges, duration exposure, and gold allocations while the situation develops.

How are equities reacting to the DOJ subpoenas news?

US equities have been resilient. The S&P 500 (^GSPC) recently slipped 0.19% to 6963.75, with technicals showing neutral momentum. Many investors are waiting for concrete legal updates. Short bursts of volatility are likely around US data and Fed communications as markets reassess policy credibility and rate cut timing.

Law and Government

January 13: DOJ Subpoenas Powell, Markets Eye Fed Independence Risk

ByDanny Kontos January 14, 2026January 14, 2026

The Jerome Powell investigation intensified after the US Justice Department issued grand jury subpoenas to the Federal Reserve and threatened a criminal indictment, putting Fed independence under the spotlight. Markets are reassessing the interest rate outlook as gold climbs on haven demand while US equities hold near recent highs. For investors in Switzerland, the risk is less about legal outcomes and more about policy uncertainty. We explain how this could affect CHF, Swiss rates, exporter earnings, and portfolio positioning in the days ahead.