The stability of U.S. financial markets was severely tested following the shocking news that the U.S. Justice Department has issued a subpoena to Federal Reserve Chairman Jerome Powell. Reuters reported the development, which immediately sent shockwaves through global currency trading, causing the dollar to drop sharply against major currencies. A DOJ subpoena directed at the sitting head of the nation’s central bank is an extremely rare and historically destabilizing event, raising profound questions about the independence of the Federal Reserve—a cornerstone of modern monetary policy. Although the precise scope and subject matter of the subpoena remain undisclosed, the action suggests a significant legal or regulatory inquiry that could implicate the central bank’s operations, decision-making processes, or past regulatory oversight. The development immediately heightened political tension, especially given past rhetoric from high-profile political figures criticizing the Fed’s autonomy and leadership. Despite the significant political and monetary uncertainty sparked by the subpoena, U.S. stock markets exhibited a surprising degree of resilience. The S&P 500 and the Dow Jones Industrial Average both managed to climb to new closing records, according to CNBC’s live updates, as traders appeared to look past the immediate risk posed by the threat to Fed independence. This divergence suggests that while the currency market reacted sharply to the institutional uncertainty, equity traders may be focusing on other factors, such as ongoing positive earnings reports or speculation about future monetary easing, or perhaps believe the legal scrutiny will not ultimately undermine the Fed’s policy capabilities. However, the accompanying market commentary explicitly flagged ‘Fed independence risk,’ acknowledging the dangerous precedent set by the Justice Department’s action, which could politicize future monetary decisions and erode investor confidence in the impartiality of the U.S. financial system’s governance structure. The ongoing pressure on the financial system is evident across multiple sectors. Simultaneously, other banking stocks were negatively impacted after calls by Donald Trump for imposing a cap on credit card interest rates, causing Capital One to drop 6% and signaling broader political intervention into banking practices. This combination of a high-stakes DOJ inquiry into the Fed leadership and direct political interference in consumer credit markets underscores a period of heightened regulatory and political volatility for the U.S. financial sector. The subpoena will force an intense internal review within the Fed and is likely to dominate financial news and political discourse for weeks, as analysts attempt to determine the source of the investigation and assess the long-term implications for the perceived neutrality and efficacy of the central bank.