David McNamara: Trump's latest Fed meddling could spook markets
A US Justice Department investigation into alleged wrongdoing by the US Federal Reserve in relation to a construction project has drawn a sharp rebuke from Fed chair Jerome Powell. Picture: AP Photo/Mark Schiefelbein
The unexpected events of the past week in Venezuela have shone a light on a potentially more muscular geopolitical approach of the US government in 2026.Â
While predictions of what might come next from US president Trump’s administration are widespread, the market reaction to the events in Venezuela last weekend has been muted so far. Brent crude prices have shown some volatility, but are only modestly higher on the week, moving from around $61/barrel to $62. On equity markets, the S&P 500 has had a solid, if unspectacular week, gaining about 1.5% last week. All in all, markets appear to have boxed off the Venezuela attack as geopolitical noise that is unlikely to affect the economy.
