US stock futures fall after Jerome Powell says he's under 'criminal investigation'

Futures on Wall Street fell in late Sunday trading US time after Federal Reserve Chair Jerome Powell said that he has been put under criminal investigation.

The Dow futures are down close to 220 points, having opened little changed after a weekly advance, while the S&P 500 futures are down 35 points. Nasdaq futures are also down 200 points as well.

In a video message posted on the Federal Reserve's official handle on "X", Powell said that the probe was an outcome of the Fed setting interest rates based on what is their "best assessment of what will serve the public", rather than following the preferences of President Donald Trump.

"On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas threatening a criminal indictment related to my testimony before the Senate Banking Committee last June," Powell said in the video message.

"I have deep respect for the rule of law and for accountability in our democracy. No one, certainly not the chair of the Federal Reserve is above the law, but this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure," the Fed Chair added.

According to the New York Times, who first reported about the investigation, the probe is being overseen by the US Attorney's office for the District of Columbia. That office is led by US attorney Jeanine Pirro, a former New York State prosecutor and Fox News host, appointed to that post by Trump.

In response, US President Donald Trump stated that the DoJ subpoenas issued to the Fed and Powell have nothing to do with interest rates, denying his involvement in the issue of those.

The US President has made multiple references in the past about Powell being "too slow" to cut interest rates. His remarks in early-2025 had led to a sharp sell-off on Wall Street, after which, he backtracked on his statements, saying he has no plans to fire Powell but the interest rates could be much lower from where they currently are.

Trump's remarks over the Fed has raised multiple questions with regards to the Central Bank's independence once a new chair takes over at the end of Powell's term.

Jerome Powell's tenure as Fed Chair ends in May 2026. Interviews have been conducted for his potential successor by the Trump administration with the list being zeroed down to three names - Kevin Hassett, who currently is the White House National Economic Council Director, Kevin Warsh, a former Fed Governor, and current Fed Governor nominated by Donald Trump, Christopher Waller.