In a joint substack statement published Monday, every living former U.S. Federal Reserve chair rebuked President Donald Trump’s administration after the Department of Justice opened a criminal probe into current Federal Reserve chair Jerome Powell, warning the move resembles what one might see in “emerging markets with weak institutions,” concerns echoed by Bank of Canada governor Tiff Macklem who offered his “full support” to Powell. (The Logic, Bloomberg)

Talking point: The investigation centers on a US$2.5-billion renovation of the Fed’s Washington headquarters, but Powell said the probe is being weaponized in retaliation for the central bank’s refusal to cut interest rates as aggressively as Trump has demanded. Both Republican and Democrat lawmakers reportedly echoed those concerns, warning of damage to market stability. The S&P 500 opened at a low on Monday morning amid growing fears over the Fed’s independence, before trading up 0.2 per cent in the afternoon. The U.S. dollar weakened, while gold hit an intraday record above US$4,612 a troy ounce.

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