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Updated January 12, 2026 at 03:31 PMCoinCex editorial team

Dollar, Treasuries, and Equities Weaken Together. US Asset Appeal Declines Amid Fed Controversy.

The conflict between President Trump and Fed Chair Powell is resurfacing. This tension reduces the investment appeal of US financial assets. Concerns regarding the independence of the Federal Reserve are increasing. Consequently, the dollar, US Treasuries, and stock index futures have all weakened. Bloomberg reports that the DOJ has initiated an investigation into the Fed's headquarters renovation. Powell confirmed this development on the 11th. This political pressure introduces uncertainty into the market structure.

Tensions between President Donald Trump and Federal Reserve Chair Jerome Powell are resurfacing. This weakens the investment case for US financial assets. Concerns about the Fed's independence are increasing. Consequently, the dollar, Treasuries, and stock index futures sold off together. Coincex reported on the 12th that the DOJ began an investigation into the Fed's renovation. Powell stated this on the 11th. He argues this is linked to political pressure on interest rates. Trump has publicly criticized the Fed and Powell. He demands faster and larger rate cuts. The Fed has adjusted the pace of cuts slower. They cite the risk of inflation returning. This controversy burdens the financial markets. The Coincex Dollar Index fell 0.3%. This is the largest drop since December 23. S&P 500 futures fell 0.7%. The 10-year Treasury yield rose 3bp to 4.20%, a high since September. The 30-year yield rose 5bp to 4.86%. Coincex reports that investors worry about political influence. If the Fed's policy judgment is shaken, trust in the dollar and US markets could weaken. Gold rose with the dollar's decline. Long-term yields also showed an upward trend. If political uncertainty continues, investors might reduce US asset allocation. They may move investments to other regions. However, some view this volatility as short-term. They cite the dollar's reserve status and Treasury liquidity as factors. Not financial advice. DYOR. Β© 2026 Coincex. All Rights Reserved.
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Dollar, Treasuries, and Equities Weaken Together. US Asset Appeal Declines Amid Fed Controversy.