Stocks Rise Amid DOJ Probe into Fed Chair Powell

On Jan 12 2026 the Department of Justice opened a criminal probe into Federal Reserve Chair Jerome Powell, alleging he made false statements about a multi‑billion‑dollar renovation of the Fed’s headquarters during a June congressional hearing. Powell issued a video rebuke, labeling the investigation a politically‑motivated attack on the Fed’s independence. Despite the probe, U.S. equities closed higher: the Dow Jones Industrial Average rose about 80 points (0.1 %), the S&P 500 gained 0.1 %, and the Nasdaq added 0.2 %. Meanwhile, a Trump‑issued tweet calling for a one‑year 10 % cap on credit‑card interest prompted declines in several major banks and issuers. The case could pressure the Fed’s policy stance, but Powell’s term ends in May 2026, with the option to sit on the policy board until 2028.