12th January 2026
US Fed Chair under criminal investigation
The U.S. Justice Department has launched a criminal investigation into Federal Reserve Chair Jay Powell over a $2.5bn renovation of the Fed's headquarters. Powell denounced the move as a political attempt to undermine the central bank's independence, linking it to his refusal to sharply cut interest rates as demanded by President Trump. Markets reacted nervously to the perceived threat to the Fed's autonomy, which is crucial for investor confidence and inflation control. Gold surged to a record $4,600 per ounce, reflecting a flight to safety, while the dollar fell and Treasury yields rose slightly, as investors began pricing in higher inflation risks. The S&P 500 futures dipped 0.7% amid heightened uncertainty.
9th January 2026
US hiring comes in weak
US job creation slowed sharply in 2025, with only 50,000 jobs added in December and an annual monthly average of 49,000, the weakest since the Covid downturn. November's unemployment rate rose to 4.6%, a four-year high, before edging down slightly to 4.4% in December. Job growth missed expectations, particularly in retail and manufacturing, although the private sector led modest gains. October's losses in government employment reflected the impact of a government shutdown. The labour market appears mixed, with limited hiring and no sign of mass layoffs, leaving the outlook uncertain. The Fed cut interest rates three times in 2025, bringing them to a three-year low of 3.6%, but policymakers remain divided on further easing. Equities were little changed, as investors await clearer signals on economic momentum and the Fed's next move.
4th January 2026
President Trump captures Venezuelan leader
President Trump's dramatic capture of Venezuelan leader Nicolás Maduro and pledge to run Venezuela until a 'safe' transition raises serious geopolitical and economic concerns. Maduro, now in US custody facing narco-terrorism charges, was seized in a raid that also targeted military sites. Trump has vowed to send in US troops if needed and to deploy American oil firms to revive Venezuela's crumbling energy infrastructure. While the move may appeal to oil markets, critics warn it risks mirroring past failed interventions in Iraq and Afghanistan. The legality of capturing a foreign head of state is under scrutiny, and Venezuela's government, still functioning under Vice President Delcy Rodríguez, has labelled it a kidnapping. Latin American allies are split, and major powers like China and Russia have condemned the action. Markets are on edge, with oil prices rising slightly on the news, while political uncertainty at home and abroad clouds the outlook for further US rate cuts this year.