US DoJ is expected to drop the criminal investigation into Fed Chair Powell, ABC reports citing sources; potentially as soon as Friday

The potential decision by the DOJ to halt the criminal investigation into Fed Chair Powell could be interpreted as a vote of confidence in his leadership, which might reassure markets regarding continued Fed stability. If confirmed, this outcome may influence risk sentiment positively across equities and fixed income, as it removes a layer of uncertainty surrounding Federal Reserve governance. Traders should monitor the market reactions closely, particularly in USD and equities, as the news breaks.