Central Asia Rewires Its Energy Future, Sidestepping Russia

President Donald Trump on Monday voiced his support for an ongoing criminal investigation into Federal Reserve Chairman Jerome Powell, dismissing a Republican senator's threat to block his replacement nominee if the probe continues.

Speaking to reporters in the Oval Office, Trump said U.S. Attorney for Washington Jeanine Pirro, who is spearheading the unprecedented investigation, should "take it to the end and see."

The president's comments came in response to a question about whether Pirro should drop the case after Senator Thom Tillis (R-N.C.) declared he would oppose any new Fed nominee until the Powell investigation is resolved.

High-Stakes Confirmation Battle Looms

Tillis issued his ultimatum on Friday, the same day Trump announced Kevin Warsh as his choice to succeed Powell as Fed chair following a months-long selection process.

As a member of the Senate Banking, Housing, and Urban Affairs Committee, Tillis holds a key vote. The committee consists of 13 Republicans and 11 Democrats. If Tillis votes with all Democrats against Warsh, he could trigger a stalemate, preventing the nomination from reaching a full Senate vote.

A Probe Rooted in Policy Disagreements

Powell first disclosed on January 11 that he was under criminal investigation. The announcement followed months of public criticism from Trump and his allies, who have consistently attacked Powell for not lowering interest rates as aggressively as the president demanded.

Powell has framed the investigation as an administrative threat intended to undermine the central bank's independence. He stated that the Fed's rate-setting decisions were "based on our best assessment of what will serve the public, rather than following the preferences of the President."

The conflict has also focused on the Fed's Washington headquarters renovation. Trump has repeatedly suggested the multi-year, multi-billion-dollar project involves either corruption or mismanagement by Powell. "It's either gross incompetence or it's theft of some kind, kickbacks. I don't know what it is," Trump said Monday. "But Jeanine Pirro is incredible, and she'll figure it out."

The Federal Reserve has defended the renovation, stating it will lower long-term costs for the central bank and has sought to explain any cost increases. According to a CNBC report, the Fed had not yet complied with grand jury subpoenas issued as part of Pirro's probe.

Powell's term as Fed chair is set to end in May.

Copper is entering a “supercycle” of sustained high prices and could trade between 100,000 yuan ($14,385) and 150,000 yuan a ton this year in Shanghai, according to Li.

Source: Bloomberg

“The unwinding of the metals rally, especially in gold and silver, is driving the dollar’s strength,” said Andrew Hazlett, a foreign-exchange trader at Monex Inc. “Weak and overleveraged hands are being shaken out and the dollar is getting all the benefit from it, since the move into metals was primarily driven by debasement considerations.”

Asset managers boosted their bearish dollar positioning just days before news of Warsh’s nomination triggered the greenback’s biggest gain since May. Month-end flows may have amplified the greenback’s rebound, according to Europe-based traders, particularly as the technical backdrop pointed to a corrective move.

What Bloomberg Strategists Say...

Source: Bloomberg

Foreign investors poured into the U.S. corporate bond market in January, buying debt at the fastest pace in nearly three years. According to data from JPMorgan Chase & Co., a combination of stable yields and lower currency hedging costs made American corporate credit an irresistible draw.

This surge in demand provides a sharp counter-narrative to fears that a weakening U.S. dollar might scare away international capital. So far, the flow of foreign money into corporate bonds has remained strong.

January Saw a Surge in Bond Buying

JPMorgan strategists Nathaniel Rosenbaum and Silvi Mantri reported that average net inflows from foreign buyers hit $332 million per day in January, the highest level recorded since February 2023.

While the pace moderated in the final week of the month—dropping 59% from the previous week to an average of $240 million—the overall monthly trend pointed decisively upward.

"Despite the concerns that a falling dollar is a sign of foreign investors selling US dollar securities, what we are seeing in credit so far seems to suggest the exact opposite," Rosenbaum noted. He highlighted "renewed very strong buying from Asia to start the year."

Why the Dollar's Dip Didn't Deter Investors

The U.S. dollar had a challenging January. A Bloomberg gauge tracking the currency fell 1.3%, its worst monthly performance since last summer, driven by geopolitical shifts and speculation of intervention to support the Japanese yen.

Typically, a falling dollar erodes the returns for foreign investors when they convert their assets back to their home currency. However, other factors proved more powerful. Rosenbaum explained that wide interest rate differentials between the U.S. and other nations, including Japan, have kept currency hedging costs low. This dynamic effectively neutralized the risk of a softer dollar, keeping U.S. debt attractive.

Looking Ahead: A Potential Boom in AI-Fueled Debt

The momentum may be set to continue. Some Wall Street strategists are now predicting that corporate bond sales could reach record highs in February, driven by a rush to finance new artificial intelligence projects.

In a separate analysis, Rosenbaum's team projected that high-grade debt issuance from the technology, media, and telecommunications (TMT) sector could reach an unprecedented $400 billion in 2026 alone.

White House Engages Industry on Key Crypto Issues

The White House has entered direct talks with leaders from the cryptocurrency and banking industries to tackle a critical issue holding up a major digital asset bill: the regulation of stablecoin yields.

Officials from the Trump administration convened the meeting to find a path forward for the Digital Asset Market Clarity (CLARITY) Act, a piece of market structure legislation currently under review in the Senate. According to The Digital Chamber, a crypto advocacy organization, its CEO Cody Carbone was among the representatives who met with administration officials to hash out the bill's provisions.

The Digital Chamber confirmed the high-level meeting on X, highlighting stablecoin yield as a key issue for advancing comprehensive market structure legislation.

The CLARITY Act’s progress stalled in January after the Senate Banking Committee postponed a scheduled markup session. Lawmakers are still grappling with several complex topics before they can advance the bill, including:

• Tokenized equities

• Decentralized finance (DeFi)

• Ethics for elected officials investing in crypto

• Stablecoin rewards

Carbone described the White House meeting as "exactly the kind of progress needed" to resolve one of the bill's most significant obstacles. He added that he is "optimistic that as we continue to dive into the policy details, a fair playing field can be created for digital assets in the US."

This positive sentiment was echoed by White House crypto adviser Patrick DeWitt, who called the discussion "constructive, fact-based" and "solutions-oriented." He expressed confidence that officials and industry leaders would reach a solution soon. Other organizations present included the Crypto Council for Innovation, the American Bankers Association, and the Blockchain Association.

Navigating the Senate's Legislative Process

The high-level meeting occurred amid a partial US government shutdown, which entered its third day after lawmakers failed to agree on a funding bill.

The path for any crypto market structure bill is complex. The Senate is working through two separate but related legislative efforts that will eventually need to be reconciled.

Last week, the Senate Agriculture Committee passed its version of the bill, which focuses on the Commodity Futures Trading Commission's role. However, it did so without any Democratic support, as some members raised objections to rules concerning elected officials holding digital assets.

Meanwhile, the Senate Banking Committee is handling the sections of the bill that define how the US Securities and Exchange Commission will oversee the crypto space. For the legislation to reach a full floor vote, both committees will likely need to combine their respective bills into a single, cohesive package. The recent White House discussion signals a coordinated effort to clear the hurdles preventing that from happening.

President Donald Trump announces the new initiative from the White House.

President Donald Trump announced the creation of a U.S. critical mineral reserve late Monday, a move designed to reduce America’s reliance on China for materials vital to modern industry. The announcement immediately boosted the shares of domestic mining companies in after-hours trading.

The initiative, dubbed "Project Vault," will establish a strategic stockpile of critical minerals specifically for the U.S. private sector. According to a White House official, the plan is backed by a combination of $1.67 billion in private capital and a $10 billion loan from the U.S. Export-Import Bank.

The core objective is to secure a domestic supply chain for materials essential for electric vehicles, advanced defense systems, and other critical technologies, directly challenging China's dominance in the sector. The proposal was first reported by Bloomberg News earlier on Monday.

Miners Rally on Stockpile News

Investors reacted positively, betting the initiative will spur domestic demand and unlock government-backed financing for American mining operations. Key movers in extended trading included:

• MP Materials: The operator of California's Mountain Pass mine saw its shares climb over 2%.

• USA Rare Earth: The company's stock jumped by more than 2%.

• Critical Metals Corp.: Shares rose by over 1%.

Washington Deepens Its Role in the Minerals Sector

Project Vault builds on a trend of increasing government intervention in the critical minerals industry. This strategic shift is highlighted by several recent developments.

USA Rare Earth has already engaged in discussions with Commerce Secretary Howard Lutnick, presenting its domestic mining and magnet production assets. These talks have led to a proposed deal that could provide the company with approximately $1.6 billion in funding, subject to certain conditions, and would also include an equity stake for the U.S. government.

This follows a landmark agreement made last summer between the Department of Defense and MP Materials. That deal involved the government taking an equity stake, setting a price floor for minerals, and committing to a long-term purchase agreement for a specific quantity of rare earth minerals and magnets.