At first glance, news of a criminal probe involving the Fed Chair sounds like something that should shake markets. Yet equities have barely reacted. One reason is that markets care more about policy than personalities. Investors are focused on interest rates, liquidity, and inflation trends, not headlines, unless those headlines threaten a shift in monetary policy.
Another factor is institutional continuity. The Federal Reserve doesn’t hinge on one individual. Even if investigations make noise, markets assume the Fed’s policy framework and decision making process remain intact. As long as rate expectations and economic data don’t change, risk assets tend to stay supported.
In short, the market is signaling confidence that the probe won’t disrupt monetary policy or financial stability. Until that assumption changes, traders are likely to keep prioritizing earnings, inflation data, and rate cut timing over political or legal drama.
Why Is the Stock Market Shrugging Off the Criminal Probe Into Fed Chair Powell?
byu/Then_Helicopter4243 instocks
Posted by Then_Helicopter4243
35 Comments
Late cycle goes like this
Mango could declare martial law and spy would probably pump 2%
Cause when we default on our debt, lower rates, and print money you will wish you could buy SPY under 1000
Can’t sell stock cause there is no where to put money safely cause our currency is about to be intentionally pillaged
Oh honey, its just the “Pretend everything’s fine and lever precious metals” phase while drowning out the anxiety over USD risk.
It’ll all be fine. Scream and cover your ears.
Sure the country burned down, but for one brief moment shareholder value was at an all time high
Because it is absolute and utter bullshit and Powell immediately threw that shit back in Trump’s face by releasing his response. The markets know it, Congress knows it, and The American people know it.
Because the bitchassery has gotten to the point where this is the least shitty thing he’s done in less than a week
>In short, the market is signaling confidence that the probe won’t disrupt monetary policy or financial stability.
Thanks, ChatGPT, for this incredible epiphany.
“The market doesn’t care because it doesn’t think it matters.” gee whiz
Synthetics baby let’s gooooo
Because there has been no real support from congress.
If congress seemed like they were going to back him in I think the risk would be seen as much higher.
cause powell said “probe this motherfucker”
Jerome’s already printed too much for any event to have an effect
They want Powell out and lower interest rates
I’m not sure it has. USD dropped immediately (came back some), and gold and silver spiked. Dedollarisation is increasing speed. Stock market would go up because each USD is worth less.
J-Pow lives rent free in mango doughboy’s head
The person who said the Federal Reserve had been “Trump-proofed” is Justin Wolfers, a professor of public policy and economics at the University of Michigan. He made that comment in a post on X (formerly Twitter) referring to the Fed’s move to preemptively reappoint regional Reserve Bank presidents — a move seen as insulating the central bank from political pressure from President Trump’s administration. 
Specifically, Wolfers wrote:
“If I’m reading this properly, they just Trump-proofed the Fed.” 
Because criminal investigations take a year or more and Powell’s term is up in May. No effect on his ability to make decisions
Because why would the market care about what happens to someone heading out the door?
Because nothing actually changed. No rate shift, no guidance change, no emergency meeting. Markets trade policy and data, not headlines. The Fed doesn’t stop functioning because one guy is under investigation. If inflation prints or rate expectations move, then you’ll see a reaction. Until then it’s just background noise.
The thinking is that Trump can talk, but that this is bluster as he doesn’t have support of anyone key in Congress. Also, when you look at who brought the charge it was Rep. Luna (R-FL)…. her jobs prior to Congress were being a waitress at a strip club and organizing Hispanics for Turning Point (Charlie Kirk’s thing). She also is the one who said Hilary Clinton had herpes and brought charges / complaints against Adam Schiff as well as Merrick Garland which were dismissed. She’s a complete nut!
Furthermore, the subpoena is from Judge Jeanine Pirro …. yes, the same one from Fox News who Trump promoted to be U.S. Attorney General for D.C.
You can’t make this stuff up…. looney tunes!
Nobody wants dollars
Markets fear uncertainty. Bad news or the ilusion of bad news are nothing, because EVERYBODY knows is a short term thing
Markets have fear when they cannot see months ahead. Not when one politician says this or that when we know, he talks and talks and talks and nothing happens. Besides inflation. But inflation helps companies in the stock market. Even if it duck us directly
Because it’s from July and despite what the target of the subpoena says, is the normal Congressional process when a member believes a witness lied during their testimony.
There aren’t enough lunatics on Reddit to overcome the market knowing this isn’t news.
Powell’s press conference did the trick, dude has been stoic throughout this whole term and he alleviated a lot of people with is response to obvious bullshit from the admin.
Inflationary measures are good for the stock market.
Those in the know Trump won’t do shit, same with the credit card rate cap.
He’ll leverage “dropping the criminal charges” for a -0.25% drop in the rates so he can say “I lowered rates, bigly!”
No one believes anything he says anymore because TACO
Taco
$600 for a basic hammer is still bonkers
What would you do if trump has a heart attack in airforce one when he is told his tariffs got struck down
Trump wants a weaker dollar, that means asset prices go up. Stock market is, unironically, a safe haven from his stupidity.
Powell is out in May regardless and his replacement will obviously be administration-leaning.
So the direction of the Fed has been known for a while. And this latest thing is, to some degree, Trump just being a dick.
A probe means nothing because we all know Powell didnt commit any crime.
Now if convicted, thats another story.
I think it’s a measure of how investors have very little confidence that Trump and his DOJ will actually do anything.
The man lies everytime he speaks. The market is treating him accordingly. It’s all talk. The investigation is fake.
Because nothing is going to happen