Washington says, “Never mind”
The latest buzz from the capital is that the DOJ dropped its investigation into Fed Chair Jerome Powell. That sounds dramatic because, well, it is. Anytime the central bank gets dragged into a political mess, markets start eyeing the exit like they’re late for a flight.
Why investors should care
Powell is still the guy steering the rate-setting ship, and the Fed’s credibility matters a lot more than most headline-chasers want to admit. If the investigation is off the board, that removes one more source of noise around monetary policy — and investors tend to like their Fed with fewer side quests.
The market angle
This doesn’t magically change interest rates, inflation, or your mortgage payment. But it does reduce the odds of a fresh Washington circus around the Fed, which can matter when traders are already obsessing over:
- the timing of rate cuts
- bond yields doing their moody little dance
- whether the Fed can stay focused on inflation instead of politics
Big picture
The takeaway isn’t “stocks to the moon.” It’s more like: one less political headache for the Fed, one less thing for markets to panic-text about. In 2026, that counts as progress.