Fed Chair Powell ends DOJ criminal investigation, reaffirms Fed independence

↓ 3.25% drops to 32%12%

The Department of Justice ended its criminal investigation into Fed Chair Jerome Powell, who emphasized the importance of the Fed's independence in setting interest rates based on economic conditions. This development helped stabilize market expectations and reduced political pressure on the Fed's rate decisions.

Market prices for Fed rate hitting 3.25% decline amid cautious Fed outlook

↓ 3.25% plunges to 44%22%

By early May 2026, market prices for the Fed rate hitting 3.25% had declined significantly from earlier highs, reflecting growing market skepticism about aggressive rate cuts given mixed economic data and ongoing political challenges to Fed independence.

Federal prosecutors attempt unannounced visit to Fed headquarters construction site

The surprise visit underscored the administration’s aggressive stance toward the Fed, reinforcing market fears of political meddling and sustaining pressure for lower rates.

Fed expected to keep rates unchanged amid political and legal pressure

Analysts projected the Fed would hold rates steady at its April meeting, reflecting uncertainty from ongoing investigations and the Supreme Court case, which steadied the market and slightly lifted the higher‑rate outcome.

Trump announces Kevin Warsh as nominee for Federal Reserve chair

↓ 3.25% dips to 63%3%

President Trump nominated Kevin Warsh to replace Jerome Powell as Fed chair, signaling potential shifts in Fed policy. Warsh faced challenges balancing Fed independence with Trump’s demands for lower rates, adding uncertainty to market expectations.

Supreme Court hears case on Trump’s attempt to fire Fed governor Lisa Cook

↓ 3.25% drops to 66%5%

The Supreme Court considered President Trump's unprecedented effort to remove Fed governor Lisa Cook, raising concerns about the Fed's independence. This political uncertainty affected market confidence in aggressive rate cuts, contributing to lower prices for rate cut outcomes.

Fed policymakers vote to keep rates unchanged amid inflation concerns

↓ 3.25% drops to 80%12%

The Federal Reserve's rate-setting committee voted 10-2 to maintain interest rates, reflecting ongoing concerns about inflation remaining above target despite a slowing labor market. This decision contributed to a decline in market expectations for deeper rate cuts in 2026.

US jobs report shows slowing hiring, complicating Fed rate outlook

↓ 3.25% drops to 81%11%

The December jobs report showed a slowdown in hiring with only 50,000 jobs added, despite previous Fed rate cuts aimed at boosting employment. This data added uncertainty about the need for further rate cuts, influencing market prices downward for lower rate outcomes.

Fed minutes show most officials want more inflation progress before further cuts

The released minutes indicated a divided committee, with many members reluctant to cut rates further until inflation eases, dampening expectations of additional cuts and causing a modest rebound in higher‑rate outcome prices.

Fed minutes reveal divided views on further rate cuts

↓ 3.25% dips to 92%1%

Minutes from the January FOMC meeting showed a split among Fed officials, with some favoring additional cuts if inflation declines, while others preferred holding rates steady. This division contributed to market uncertainty and declining prices for lower rate outcomes.

President Trump nominates Kevin Warsh to be Fed chair

Trump’s nomination of Warsh, a known Trump ally, signaled a potential shift toward more aggressive rate cuts, prompting the market to further price in lower‑rate outcomes.

Fed minutes reveal majority want more inflation progress before rate cuts

↓ 3.25% dips to 91%1%

Minutes from the January Fed meeting showed most officials preferred to hold rates steady until inflation falls further, indicating a cautious approach to rate cuts. This tempered market expectations for significant rate decreases soon.

Kevin Warsh nominated by President Trump as next Federal Reserve Chair

President Donald Trump nominated Kevin Warsh to replace Jerome Powell as Fed Chair, raising market uncertainty due to Warsh's reputation as a rate hawk but recent support for lower rates. The nomination highlighted the political pressures on the Fed and concerns about maintaining its independence, influencing market expectations for future rate decisions.

Treasury Secretary Scott Bessent proposes residency rule for regional Fed presidents

Bessent’s proposal to require regional Fed presidents to live in their districts could increase White House influence over the Fed, reinforcing market expectations of a more dovish stance and further price declines for lower‑rate outcomes.

Fed expected to keep rates unchanged amid economic uncertainty

↓ 3.25% drops to 89%5%

Ahead of the January FOMC meeting, the Fed signaled it would likely keep rates steady at about 3.6%, reflecting a cautious approach given mixed economic data and political pressures. This tempered market expectations for further rate cuts, contributing to a decline in prices for lower rate outcomes.

Fed holds interest rates steady amid inflation and job market uncertainty

At the January FOMC meeting, the Fed decided to keep rates unchanged at about 3.6%, reflecting a balance between persistent inflation and signs of a stabilizing labor market. Chair Powell indicated the Fed would wait to assess economic developments before making further moves, dampening expectations for immediate rate cuts.

Supreme Court hears case on President’s attempt to fire Fed governor Lisa Cook

The high court’s oral arguments on the legality of removing Governor Cook highlighted the administration’s push to reshape the Fed, raising the probability of a more politically driven rate policy and influencing market sentiment toward lower rates.

Supreme Court hears case on Trump’s attempt to fire Fed governor Lisa Cook

↓ 3.25% dips to 90%4%

The Supreme Court considered whether President Trump could remove Fed governor Lisa Cook, a case seen as pivotal for the Fed’s independence. The court’s decision was expected to influence market confidence in the Fed’s ability to set rates free from political pressure.

Fed Chair Powell condemns DOJ subpoenas as political pressure

↓ 3.25% dips to 94%1%

Jerome Powell publicly stated that the Department of Justice subpoenas and threat of criminal indictment were pretexts to pressure the Fed into cutting interest rates, highlighting political interference concerns. This increased market uncertainty about Fed independence and future rate policy.

DOJ launches criminal investigation into Fed Chair Jerome Powell

Federal prosecutors initiated a criminal investigation into Fed Chair Jerome Powell related to his testimony about a multi-billion-dollar Fed building renovation. Powell stated the probe was a politically motivated attempt to pressure the Fed to lower interest rates, escalating tensions and impacting market confidence in Fed independence.

Fed Chair Powell condemns Justice Department subpoenas as political pressure

Fed Chair Jerome Powell publicly stated that subpoenas from the Justice Department were 'pretexts' aimed at forcing the Fed to cut rates, underscoring political tensions and the Fed's commitment to economic-based decisions. This statement reassured markets about Fed independence, influencing rate cut expectations and market prices.

Fed Chair Powell says DOJ subpoenas are pretext to force rate cuts

Powell released a video statement accusing the Justice Department of using criminal subpoenas to pressure the Fed into cutting rates, reinforcing concerns about political interference and increasing expectations of further rate reductions.

Federal Reserve cuts key interest rate by quarter point amid internal dissent

↓ 3.25% rises to 90%1%

At the December 9-10 meeting, the Fed cut its key interest rate by 0.25% to about 3.6%, but the decision was contentious with a 9-3 vote showing divisions among officials. This move reflected uncertainty about the economy and inflation, impacting market expectations for future rate levels.

Fed cuts interest rate by quarter point amid labor market concerns

↓ 3.25% dips to 89%1%

The Federal Reserve cut its key interest rate by 0.25% for the third time in 2025, lowering it to about 3.6%, reflecting concerns about a weakening labor market despite ongoing inflation. The decision was marked by notable dissent, highlighting uncertainty within the Fed about the appropriate policy path.

Fed cuts key rate by a quarter point at December meeting

The Federal Open Market Committee voted 9‑3 to cut the target federal funds rate to about 3.6%, the first cut of the year, signaling a move toward lower rates and prompting market participants to price in a higher chance of the lower‑rate outcomes.

Fed officials signal divided views on further rate cuts amid inflation concerns

↓ 3.25% surges to 82%31%

Minutes from the Federal Reserve's recent meeting revealed a split among officials, with some favoring additional rate cuts if inflation declines, while others preferred holding rates steady due to persistent inflation and a stabilizing job market. This division contributed to fluctuating market expectations for rate cuts at various levels.