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Federal prosecutors open criminal investigation into Fed Chair Powell – NYT. (00:14) Allegiant (ALGT) to acquire Sun Country (SNCY) in $1.5B cash-and-stock deal. (01:42) Meta removes 550,000 accounts across its social media platforms in compliance with the under-16s ban. (02:30)
This is an abridged transcript.
The U.S. attorney’s office in the District of Columbia has launched a criminal investigation into Federal Reserve Chair Jerome Powell over the central bank’s renovation of its Washington headquarters and whether Powell lied to Congress about the project’s scope, the New York Times reported Sunday.
The inquiry, which includes analysis of Powell’s public statements and examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Trump who was appointed to run the office last year, the Times reported, citing people briefed on the matter.
The investigation opens a significant new legal front against Powell, whom Trump has repeatedly attacked for resisting demands to slash interest rates. The president has threatened to fire the Fed chair—despite nominating him for the position in 2017 — and raised the prospect of a lawsuit related to the $2.5 billion renovation, citing “incompetence.”
Trump told The New York Times last week that he has decided on Powell’s replacement, with Kevin A. Hassett, Trump’s top economic adviser, emerging as a front-runner. While Powell’s term as chair ends in May, his term as a governor runs through January 2028.
The renovations at the center of the investigation broke ground in 2022 and are estimated to be approximately $700M over budget. The project involves expanding and modernizing the Marriner S. Eccles Building, built in 1935, and another building on Constitution Avenue, built in 1932. Neither building has been comprehensively renovated since construction nearly 100 years ago.
A 2021 version of the Fed’s proposal described private elevators and dining rooms for top policymakers, water fountains, new marble features, and a rooftop terrace. At a congressional hearing in June, Powell denied that many of those features were part of the latest proposal.
Powell released an extraordinary statement, asserting that grand jury subpoenas served by the Department of Justice are not about legitimate legal concerns but rather punishment for the central bank’s refusal to set interest rates according to President Donald Trump’s preferences.
President Donald Trump denied any knowledge Sunday of the Justice Department’s investigation into the Federal Reserve and Chairman Jerome Powell.
Allegiant Travel Co. (ALGT) has agreed to acquire Sun Country Airlines (SNCY) in a cash-and-stock transaction.
The deal values the Minneapolis-based carrier at approximately $1.5 billion, including net debt.
Under the terms of the definitive agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share they own, implying a value of $18.89 a share. The offer represents a 19.8% premium to Sun Country’s (SNCY) closing price of $15.77 on Friday.
Allegiant (ALGT) shares closed at $94.97 on Friday, giving the company a market value of $1.68 billion.
Meta has removed more than 500,000 Australian children from Facebook and Instagram to comply with the country’s social media ban for under-16s.
The social media giant said it removed 330,000 users from Instagram, 173,000 from Facebook, and 39,000 from Threads between December 4 and 11.
Meta released the data a month after the ban came into effect on December 10, 2025. The law mandates that services such as Facebook, Instagram, Snapchat, TikTok, X, YouTube, Reddit, Twitch, Threads, and Kick keep users under the age of 16 off their platforms or face fines of up to A$49.5 million ($33 million).
Meta also argued that early data suggests the ban is not improving teen safety or wellbeing. The company said inconsistent age-verification measures across platforms are weakening enforcement and pushing some teenagers toward smaller, less regulated apps, while algorithm-driven content remains accessible through other means.
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Gold, silver spike as Fed receives DOJ subpoenas
Catalyst watch:
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One of the biggest retail conferences of the year will take place. The ICR Conference typically includes a wave of holiday sales updates and full-year guidance announcements. Notable companies participating include Walmart (WMT), Urban Outfitters (URBN), Shake Shack (SHAK), Movado (MOV), and Yeti Holdings (YETI).
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The four-day JPMorgan Healthcare Conference begins in San Francisco. The conference is considered one of the most important of the year in the healthcare sector. Johnson & Johnson (JNJ), Novartis (NVS), AstraZeneca (AZN), Bristol-Myers Squibb (BMY), and Kodiak Sciences (KOD) are some of the notable companies making presentations. FDA Commissioner Marty Makary will give a dedicated keynote talk on regulatory priorities, accelerated approvals, AI in drug development, and safety/efficacy standards.
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The National Retail Federation’s Big Show event will take place in New York City. BJ’s Wholesale Club (BJ) CEO Robert Eddy, Dick’s Sporting Goods (DKS) Executive Chairman Ed Stack, and Abercrombie & Fitch (ANF) CEO Fran Horowitz will be giving speeches or participating in fireside chats.
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Shareholders of Avadel Pharmaceuticals (AVDL) vote on the buyout offer from Alkermes (ALKS). AVDL traded about 4% below the buyout price of $22.50 at the time of publication.
Dow, S&P and Nasdaq futures are in the red. Crude oil is down 0.6% at $58/barrel. Bitcoin is down 0.5% at $90,000. Gold is up 1.8% at $4,590.
The FTSE 100 is down 0.1% and the DAX is up 0.4%.
The biggest movers for the day premarket: Capital One (COF) -7.3%, American Express (AXP) -3.5%, Visa (V) and Mastercard (MA) -1.7% – Shares of credit card companies and banks fell in premarket trading after President Donald Trump warned that lenders would be “in violation of the law” if they fail to cap interest rates at 10% for one year.
On today’s economic calendar:
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10:35 am St. Louis Federal Reserve Bank President Alberto Musalem speaks on the U.S. economy and monetary policy before an MNI webinar.
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12:30 pm Atlanta Federal Reserve Bank President Raphael Bostic moderates a discussion with the CEO of Intercontinental Exchange.
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12:45 pm Richmond Federal Reserve Bank President Tom Barkin will speak at the North Carolina Bankers Association Economic Forecast Forum.
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6:00 pm New York Federal Reserve Bank President John Williams gives keynote before the C. Peter McColough Series on International Economics event organized by the Council on Foreign Relations.
