Trump’s Fed Subpoena Claim Stirs Uncertainty for Major Banks and Financial ETFs

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“Fed has not yet complied with subpoenas as Powell probe continues: Source:”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s post highlighting subpoenas and a continuing probe into Fed Chair Powell could heighten political and regulatory uncertainty around monetary policy, potentially pressuring broad financials sentiment and weighing on sector ETFs like XLF, KRE, and VFH in the near term. Large money-center banks such as Bank of America (BAC) and JPMorgan Chase (JPM) may see increased volatility as investors reassess interest-rate expectations, funding costs, and regulatory risk tied to Fed independence. Goldman Sachs (GS), with its sensitivity to capital markets activity, could also be hit if the headlines dampen risk appetite and deal-making, although any market reaction will depend on whether the investigation appears likely to alter Fed policy or leadership in a material way.

Here are some of the stocks that might be affected:
Bank of America ((BAC)),
JPMorgan Chase & Co. ((JPM)),
Goldman Sachs Group ((GS)),
Financial Select Sector SPDR Fund ((XLF)),
SPDR S&P Regional Banking ETF ((KRE)),
Vanguard Financials ETF ((VFH)).