Join our daily newsletter At The Bell to receive exclusive market insights
We’re less than two weeks into 2026, and Donald Trump wants to arrest Jerome Powell on criminal charges. Personally, the man himself, for apparent statements made during an inquiry process last year into renovations of the Federal Reserve building.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
If that feels like a strange reason to want to arrest the Federal Reserve Chairman to you, reader, that’s because it is – something Jerome Powell himself asserted via official government communication channels (Read: The Federal Reserve press release page and its official YouTube channel).
What this will mean for markets overnight in the U.S. is anybody’s guess at this early stage, but you’d be forgiven for thinking that you could predict what might happen. And that’s kind of because you can.
Gold, Nasdaq futures first to rattle
If you’re thinking to yourself, “Well, the price of gold might go up, and I guess Nasdaq futures turned red,” congratulations!
You’re unlucky enough to have been paying attention to markets for so long; now you know their rhythm. May God save your soul.
Does he mean it? We don’t know yet
By and large, this surprise move has caused shock across global financial markets broadly (particularly among the commentariat), and you can expect to hear a lot about this in the next 24 hours, if not throughout the week.
Trump hasn’t exactly been shy about his less-than-favourable attitude towards Jerome Powell, and once again, Trump has long been hinting he might go after Powell. The Fed Chair, don’t forget, is outgoing – and with a loyalist likely set to take over in the near future, this is yet another test of global confidence in the Trump Administration’s overall management of the U.S. economy.
The question now becomes: How serious is Donald Trump? Who knows. As of 3pm AEDT, he hasn’t posted about the move on Truth Social yet.
Worth noting is prediction markets, currently quite popular in the U.S., haven’t charged ahead with the expectation Powell will be removed from his position early due to this probe from Trump’s Department of Justice.
(Sorry for the clunky vertical screenshot, but you get the idea. Also, Polymarket is banned in Australia).
One to watch, and a reminder that we shouldn’t expect CY26 to be any less uncertain than last year. Or the year before that. Or the year before that. And so on. You’ll get the gist sooner rather than later.
Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
