Federal prosecutors have opened a criminal investigation of [Federal Reserve](https://www.cnbc.com/federal-reserve/) Chairman [Jerome Powell](https://www.cnbc.com/jay-powell/), he confirmed on Sunday evening. Powell said the probe was the result of the [Fed](https://www.cnbc.com/2026/01/03/federal-reserve-powell-face-challenges-in-2026.html) “setting [interest rates](https://www.cnbc.com/2025/12/10/fed-interest-rate-decision-december-2025-.html) based on our best assessment of what will serve the public, rather than following the preferences of President [Donald Trump](https://www.cnbc.com/donald-trump/)."
As a result, futures on the Dow Jones Industrial Average dipped 199 points. S&P 500 futures shed 0.5% and Nasdaq-100 futures lost 0.7% as investors took off some risk on this new, more tense stage of the standoff between Trump and the Fed.