Prediction Bets Surge on Powell Fed Exit After DOJ Drops Probe

Prediction markets like Kalshi have surged with bets on Federal Reserve Chair Jerome Powell leaving his Fed governor role following the DOJ's closure of its criminal probe. The DOJ announced it ended the investigation and transferred oversight to the Fed’s Office of Inspector General, initially viewed as reducing legal uncertainty and supporting S&P 500 sentiment. However, the development has sparked fresh doubts about Fed leadership and policy direction, potentially boosting short-term volatility in the S&P 500 as investors reassess risks.