Sell America Market Returns Amid Fed Probe Concerns
- When investors around the world woke up Monday to news that the U.S.
- The result was a return of what is dubbed a "Sell america" market, which first emerged last April after president Donald Trump's surprise tariff announcement.
- Fed Chair jerome Powell said the criminal probe was an intimidation tactic by the Trump administration because the president was frustrated by the central bank's self-reliant decisions on...
When investors around the world woke up Monday to news that the U.S. Justice Department had subpoenaed the Federal Reserve in a criminal examination, it rekindled fears about whether America was still the gold standard for investment.
The result was a return of what is dubbed a “Sell america” market, which first emerged last April after president Donald Trump’s surprise tariff announcement.
Fed Chair jerome Powell said the criminal probe was an intimidation tactic by the Trump administration because the president was frustrated by the central bank’s self-reliant decisions on interest rates and its refusal to comply with Trump’s demands for ultra-low rates.
Powell’s statement instantly set off alarms for investors and trading desks around the globe. The S&P 500 and Nasdaq opened slightly lower before trading mixed.
The yields on U.S. government bonds soared to the highest levels as September 2025, a sign of worry in the markets that a less independent Federal Reserve might not be able to control inflation. Yields for the 10-year Treasury, which mortgage rates closely track, rose above 4.2%. The 30-year Treasury yield, which is often viewed as a barometer of future inflation worries, rose above 4.8%.
The U.S. dollar also weakened against every major currency. As of 10:40 a.m. ET, the ICE U.S. dollar index, which measures the dollar’s performance against a basket of foreign currencies such as the euro, pound sterling and yen, was down 0.3%, nearly to its lowest level since early December.
A decline in the dollar directly makes it more expensive for U.S. companies to import products from overseas and for consumers to travel or study abroad. It also lowers the value of American exports, because products that are paid for in foreign currencies are worth less in dollars than they had been just a few days ago.
The rise in interest rates and the drop in the dollar also run directly counter to the administration’s recent affordability push.
“The Federal Reserve’s independence and the public’s perception of that independence are critical for economic performance, including achieving the goals Congress has set for the Federal Reserve of stable prices, maximum employment, and moderate long-term interest rates,” former Fed chairs Ben Bernanke, Janet Yellen and Alan Greenspan said in a statement alongside several former Treasury secretaries.
“Powell has explicitly characterised this as an attack on the Fed’s independence from the Trump administration,” strategists at ING wrote in a client note Monday.
“The combined drop in the dollar, equities and Treasuries was a reminiscence of the ‘sell America’ days of last spring,” they said.
In April 2025, stocks fell precipitously and Treasury yields and precious metals soared after Trump’s ”Liberation Day” tariff rollout.
Precious metals soared again Monday. The price of gold rose 2.6% and the price of silver rose more than 7% by midmorning.
After that episode last spring, the credit rating agency Moody’s downgraded the United States’ credit rating, but said that it maintained a “stable outlook” for america’s economy nonetheless.
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Financial Market Reactions & US-Venezuela Relations (January 2026)
Table of Contents
stock Performance of Financial Institutions (January 12, 2026)
Shares of major credit card issuers and banks experienced declines in trading on Monday, January 12, 2026. Capital One’s stock price decreased by 7.3% during the trading day, while american Express and Citigroup saw drops of approximately 4.1% and 3.8% respectively. Capital One Stock, American Express Stock, Citigroup Stock. Larger banks, including JPMorgan Chase, Bank of America, and Wells Fargo, also experienced declines, falling by around 2.1%, 1.9%, and 2.3% respectively. JPMorgan Chase Stock, Bank of America Stock, Wells Fargo Stock. These declines occurred amidst ongoing geopolitical developments and economic uncertainty.
US Policy Towards Venezuela & Oil investment
The United States government, under the Trump administration, has been actively pursuing a change in leadership in Venezuela, initially removing Nicolás Maduro from power on January 3, 2026. U.S. Department of State – Venezuela. This action has prompted discussions regarding potential investment by US oil companies in Venezuela’s oil sector.
Trump Administration‘s Pressure on ExxonMobil
Donald Trump expressed dissatisfaction with ExxonMobil’s assessment of investment opportunities in Venezuela.During a White House roundtable on January 9, 2026, ExxonMobil CEO Darren woods publicly stated that Venezuela was currently “uninvestable” due to political and economic instability. Reuters: Trump threatens retaliation against Exxon over Venezuela comments. Trump responded to this statement by suggesting he would “be inclined to keep Exxon out” of any future Venezuelan oil ventures, indicating a potential willingness to favor other companies. White House Statement on Venezuela (January 11, 2026).
Impact on Oil Prices
The political situation in Venezuela and the US government’s actions have influenced global oil prices. Following the initial move to remove Maduro on January 3, 2026, oil prices experienced a temporary decline. However, as of January 12, 2026, oil prices have risen by more than 2.5% for the year, driven by factors including geopolitical tensions and supply dynamics. U.S. Energy Details Administration – Petroleum prices. The overall impact on oil prices remains volatile and subject to further developments.
Breaking News Check (2026/01/12 17:13:30):
As of this time, there have been no significant new developments regarding the stock market fluctuations or the US-Venezuela situation beyond the events reported in the verified sources above. The situation remains fluid, and further updates are expected.