USD: Markets rattled as Fed receives grand jury subpoenas – Scotiabank

The start of the week has seen markets jolted following Fed Chair Powell's alarming statement that the central bank has received grand jury subpoenas. This unexpected news can significantly undermine investor confidence, potentially leading to volatility in the U.S. dollar. Concerns surrounding the transparency and decision-making processes of the Fed are intensifying, suggesting that these developments may influence financial markets considerably. With the uncertainty regarding monetary policy heightened, investors might adopt a risk-averse approach across various asset classes. This could lead to shifts in the flow of capital, notably impacting the forex market as the dollar responds to the unfolding situation. The forthcoming statements from the Fed and key economic indicators will crucially shape market reactions.