Trump Trade: Fed Chair Powell under investigation by U.S. prosecutors

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.

UNDER INVESTIGATION: Federal Reserve Chair Jerome Powell said in a statement, “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. That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings. 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. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions-or whether instead monetary policy will be directed by political pressure or intimidation. I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”

Meanwhile, The Wall Street Journal’s Nick Timiraos, Sadie Gurman, and C. Ryan Barber reported that U.S. prosecutors are investigating Federal Reserve Chair Jerome Powell over his testimony about the central bank’s building renovation project. The Fed received grand jury subpoenas from the Justice Department that threaten a criminal indictment relating to Powell’s testimony. Powell said the investigation was a pretext as part of President Trump’s campaign to pressure the Fed to lower interest rates.

INTEREST CAP: President Trump said on social media, “Please be informed that we will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more, which festered unimpeded during the Sleepy Joe Biden Administration. AFFORDABILITY! Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%. Coincidentally, the January 20th date will coincide with the one year anniversary of the historic and very successful Trump Administration.” Publicly traded companies in the credit card space include American Express (AXP), Capital One (COF), MasterCard (MA), Synchrony (SYF) and Visa (V).

VENEZUELAN OIL: In a meeting with U.S. oil CEOs, U.S. President Donald Trump said that the government of Venezuela has agreed to give the U.S. 30M barrels of oil worth roughly $4B, the Financial Times’ Jamie Smyth reports. The president claims this money will not be going to the oil industry, and he seemed to walk back an earlier suggestion that U.S. tax revenue could be used to reimburse companies for investing in Venezuela, saying “they don’t need government money,” the author notes. The president added that he will make a decision on which oil companies will operate Venezuela as soon as today or “very shortly thereafter,” the author says. Publicly traded companies in the space include BP (BP), Chevron (CVX), ConocoPhillips (COP), Exxon Mobil (XOM), Shell (SHEL) and TotalEnergies (TTE).

President Trump may block Exxon Mobil from drilling in Venezuela after the company’s CEO said the country was “uninvestable” without significant commercial and legal changes, Annie Linskey of The Wall Street Journal reports. “I’ll probably be inclined to keep Exxon out,” Trump said, according to Reuters. “I didn’t like their response. They’re playing too cute.”

OPTIONS ON IRAN: Donald Trump says U.S. is considering military operations in Iran as the Islamic republic is starting to cross his red line with a more intense crackdown on protests, Financial Times’ Steff Chavez and Andrew England write, citing the president’s commentary from Air Force One on Sunday. Washington might intervene before any contemplated negotiating session takes place, the report states.