Finding Investing Shelter From the Gathering Storm Around Jerome Powell and the Fed

1. Canary Gold Corp. is a billboard sponsors of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Canary Gold Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

2. Disclosure for the quote from the John Newell article published on December 5, 2025

1. For the quoted article (published on December 5, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,500.
2. Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

Federal Reserve Chair Jerome Powell has announced that the Department of Justice has issued subpoenas to the central bank and has threatened criminal charges against him concerning his testimony this summer about the Fed's office renovations, according to a report by Christopher Rugaber for The Associated Press on January 11.

This action marks an unprecedented intensification in President Donald Trump’s ongoing conflict with the Fed, an independent body he has frequently criticized for not reducing its key interest rate as much as he desires.

The subpoenas are connected to Powell's testimony before the Senate Banking Committee in June, where he discussed the Fed's US$2.5 billion renovation of two office buildings — a project Trump has labeled as excessive. On January 11, Powell abandoned his previously restrained response to Trump’s criticisms and personal attacks, which he had largely ignored until then, according to the article. Instead, he released a video statement in which he candidly described the threat of criminal charges as mere "pretexts" intended to compromise the Fed's autonomy in setting interest rates.

"This concerns whether the Fed can persist in determining interest rates based on data and economic circumstances — or if, instead, monetary policy will be influenced by political pressure or coercion," Powell said.

In a message to ABC News, a representative for Attorney General Pam Bondi mentioned, "The Attorney General has directed her U.S. Attorneys to give priority to investigating any misuse of taxpayer funds," Elizabeth Schulze reported for the network on January 11.

Tim Lauer, a spokesperson for D.C. U.S. Attorney Jeanine Pirro, conveyed to ABC News in a statement, "We do not comment on ongoing investigations."

Investigation Spurs Supporters

On the Monday after Powell's statement, the investigation seemed to galvanize supporters of the U.S. central bank, according to a piece by Rugaber and Josh Boak for The Associated Press published by PBS on January 12. The reaction highlighted the broader implications of a struggle over the Fed's independence, the distribution of power in the federal government, and the direction of the U.S. economy. Trump has consistently criticized Powell for not reducing the Fed's benchmark interest rates to his satisfaction, but the possibility of a criminal indictment crossed a line for an institution that significantly impacts both inflation and employment.

Several Republican senators have denounced the Department of Justice's subpoenas of the Fed, describing them as a "pretext" to coerce him into drastically lowering interest rates as Trump has demanded. A bipartisan group of former Fed chairs and leading economists likened the Trump administration's actions to those seen in less affluent nations. Some analysts noted that the financial market's initial subdued reaction to the news indicated a common belief that Powell could effectively counter the accusations that his explanation to lawmakers of the Fed's US$2.5 billion project was criminal, the AP report said.

Although Powell's term as chair concludes in May, he holds a separate position as a Fed governor until January 2028, Rugaber and Boak noted. According to Jason Furman, an economist at Harvard and former top advisor to President Barack Obama, Trump's actions might increase the likelihood that Powell will remain on the Fed's governing board after his chairmanship ends, to protect the Fed's independence in setting interest rates from political influence, they reported.

While a rate cut was already seen as improbable at the Fed's upcoming meeting in about two weeks, the news of the Justice Department's investigation likely means the Fed will avoid cuts at the next meeting to demonstrate that it cannot be swayed by political pressure, economists suggested.

Powell quickly gained a growing number of supporters among Senate Republicans, including Sen. Thom Tillis from North Carolina, a member of the Senate Banking Committee, who stated in response to the subpoenas that he would oppose any of the Trump administration's nominees for the Fed, including those to replace Powell. "If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," Tillis remarked.

Expert: Possible Higher Inflation, Economic Instability?

In an interview with Time published on January 14, Furman said he was not aware of any precedent for prosecuting a Federal Reserve Chair in the United States.

"President Trump previously mused in public about firing Chair Powell, but he has always backed off, and last year the Supreme Court went out of its way to say that the president likely could not fire Federal Reserve Governors (including the Chair) without cause," Furman said. "The closest precedent to the criminal investigation of Jay Powell is President Trump's attempt to fire Governor Lisa Cook based on claims about mortgage fraud — although that emerged from what was apparently a selective investigation and document leak from the Federal Housing Finance Agency (FHFA), not a criminal prosecution by the Justice Department."

Furman said decades of economic research and experience reveal the outcomes in countries lacking independent central banks. Typically, these nations experience higher inflation, elevated interest rates, and greater economic instability.

"Independent central banks are a critical solution to the problem of how to have all the benefits of fiat currency, money that you print and declare is money, which can really help stabilize the economy when used wisely, without any of the temptations that come from printing too much of it, devaluing the currency, and correspondingly increasing inflation," Furman said.

Trump announced late last year that he was concentrating on two main candidates to lead the Federal Reserve: former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett, according to Fox Business' Eric Revell on December 12, 2025. In an interview with The Wall Street Journal, Trump indicated that Warsh was the frontrunner, noting that both Warsh and Hassett are key figures in his decision-making process. "Yes, I think he is. I think you have Kevin and Kevin. They're both — I think the two Kevins are great," Trump remarked. "I think there are a couple of other people that are great."

A 'Self-Fulfilling Prophecy'

Economists caution that if the executive branch manages to take control of the Fed, it could lead to a "self-fulfilling prophecy" of increased long-term inflation, Eva Roytburg wrote for Fortune on January 11 in a piece published by Yahoo! Finance.

Oxford Economics recently pointed out that any “cracks in the Fed's independence” could quickly spread through financial markets, ultimately increasing borrowing costs for the very businesses the administration aims to support with low interest rates.

In a note released last July, when Trump openly threatened to dismiss Powell, Deutsche Bank warned that such an action could trigger significant market turmoil, Roytburg noted. "Both the currency and the bond market can collapse," the bank stated, highlighting the elevated risks of inflation and financial instability. "The empirical and academic evidence on the impact of a loss of central-bank independence is fairly clear."

Executives on Wall Street have echoed these concerns. Brian Moynihan, CEO of Bank of America, recently remarked that undermining the Fed's independence would have serious repercussions, the article said. "The market will punish people if we don't have an independent Fed," Moynihan said.

According to a piece by Market Minute published by WRAL News on January 12, "As we navigate the coming months, the question is no longer whether the Fed is independent, but whether the market cares. For now, the answer seems to be a resounding 'not yet.' But in a world where the rule of law is increasingly intertwined with the rules of the market, that indifference may be the greatest risk of all."

Stocks "shrugged" and hit record highs after news of the investigation broke, according to a CNN report by Jeff Towfighi on January 12. But if that attitude breaks, investors will likely turn to hedges like precious metals, as the current bull markets in gold and silver show as geopolitical tension continues to bubble across the world.

Some stocks that could weather the storm including the following gold companies — one major and a junior.

Newmont Corp.

Newmont Corp. (NEM:NYSE; NGT:TSX; NEM:ASX), the largest gold producer globally, saw its stock perform exceptionally well in 2025. This success was driven by rising gold prices, robust free cash flow, exceeding earnings expectations, and strategic asset optimization and debt reduction. These factors led to significant gains for the year and positive analyst ratings, with raised targets, despite some late-year volatility due to fluctuations in the precious metals market.

The company projected a gold production of 5.9 million ounces for 2025 and achieved significant milestones, such as reaching commercial production at Ahafo North. According to a report by Scott Levine of The Motley Fool, published on AOL on January 5, Newmont's shares were up 2.4% at 1:16 p.m. ET, slightly down from an earlier increase of 4.6%. "With the price of gold rising 3% as of this writing, investors are motivated to gain exposure to gold through Newmont stock," Levine noted.

As the only gold producer in the S&P 500, Newmont is a popular choice for those seeking exposure to gold. Levine added, "For investors seeking to gain exposure to gold, Newmont stock is a viable consideration. Although shares rose higher today, they remain reasonably valued, priced at 14.1 times forward earnings."

Newmont produces gold, copper, silver, zinc, and lead, with operations across North America, South America, Africa, and Australia. Based in Denver, Colorado, Newmont is committed to sustainable mining, aiming to create value while minimizing environmental impact, and is recognized for its strong ESG performance. In 2025, Newmont successfully integrated Newcrest Mining after a US$17 billion acquisition in 2024, establishing itself as one of the world's largest producers of gold and copper. As part of its portfolio optimization strategy, Newmont executed a non-core asset divestiture program announced in 2024, raising up to US$4.3 billion through the sale of operations such as Musselwhite, Éléonore, Cripple Creek & Victor, Akyem, and Porcupine.

Operationally, Newmont achieved commercial production at its Ahafo North project in Ghana in October 2025, following the first gold pour in September. Financially, the company reported a record free cash flow of US$1.6 billion in the third quarter of 2025, marking its fourth consecutive quarter exceeding US$1 billion, with revenue of US$5.52 billion and net income of US$1.84 billion.d

Newmont Corporation is considered one of the top metal stocks to purchase currently, according to a January 15 report by Neha Gupta for Insider Monkey on Yahoo! Finance. On December 29, analysts at Raymond James increased Newmont's price target from US$99 to US$111 and maintained an Outperform rating. The research firm attributes this price target increase to Newmont's exposure to gold through a global portfolio with lower jurisdictional risk. This positioning allows the company to generate strong cash flow as gold prices rise, reinforcing its financial stability. Additionally, being the only gold stock listed in the S&P 500 highlights its unique appeal to institutional investors.

In an October 10, 2025, opinion piece for Streetwise, Jason Williams of Wealth Daily described Newmont as the "crown jewel" of safe havens in the gold market. The company's merger with Newcrest in 2023 brought in valuable gold and copper assets, solidifying Newmont's leadership in the industry. Williams noted that with gold prices above US$4,000, Newmont's free cash flow is set to expand significantly, transforming its margins from healthy to extraordinary. "This isn't just a miner — it's a cash-flow machine, a dividend payer, and a global anchor for institutional capital," Williams wrote.

According to Stock Analysis, the average rating among nine analysts for NEM stock is "Strong Buy," with a 12-month stock price target of US$99.33, a decrease of -7.01% from the time of the update.

¹Less than 1% of the company is held by insiders and management and holding companies, while about 80% is held by institutions, with the remainder held by retail investors. Top shareholders include The Vanguard Group Inc. with 12.18%, BlackRock Institutional Trust Co. with 5.6%, State Street Investment Management with 4.53%, BlackRock Investment Management with 2.41%, and Geode Capital Management LLC with 2.39%.

Newmont's market cap is US$124.53 billion, with over 1 billion shares outstanding, trading in a 52-week range of US$37.68 to US$106.34.

Canary Gold Corp.

Canary Gold Corp. (BRAZ:CSE; CNYGF:OTC; K5D:FSE) announced on January 15 that it has kicked off its 2026 exploration program at the Madeira Project in Brazil, marked by the arrival of the first drill rig on site. 

The company has teamed up with Geosol, a leading drilling services provider, to execute a comprehensive, multi-rig drilling campaign aimed at defining near-surface mineralization. This exploration effort employs a dual-rig strategy, combining specialized drilling for geological definition with rapid regional coverage.

"The first drill rig has arrived on site and is currently mobilizing to initial collar locations," the company stated. The rig uses a screw-auger drilling system, a specialized technique optimized for unconsolidated ground conditions, designed to recover high-quality samples from the favorable 'Mocururu' geologic horizon and associated prospective gravel beds.

Key aspects of the screw-auger program include:

• Targeting high-priority geological zones (Mocururu and gravel beds).
• Drilling approximately 5,000 meters across roughly 100 drill holes.
• Using an initial grid of 200 meters x 100 meters, with flexibility to adjust spacing based on visual observations and assay results.
• Drilling to a maximum depth of approximately 50 meters per hole.

The company anticipates the arrival of a second drill rig — a Reverse Circulation (RC) unit — later in January. While the screw-auger program focuses on defining specific near-surface geological units, the RC rig will "sweep" the broader land package included in the original agreement with New Frontiers. This phase aims to rapidly assess regional geological continuity and identify new priority targets across the property.

Key highlights of the RC program include:

• Regional reconnaissance drilling to test the broader extent of the property and identify new geological anomalies.
• Approximately 15,000 meters of drilling across roughly 300 drill holes.
• Using a wide-spaced reconnaissance grid of approximately 2,000 meters x 1,000 meters.
• Consistent testing of the oxide profile to a maximum depth of approximately 50 meters.

²The company is positioned at the intersection of rising gold prices and an improving market in Brazil. According to Technical Analyst John Newell on December 5, 2025, Brazil is quietly transforming how gold is discovered, tracked, and authorized in the country. At the heart of these trends is Canary, which controls about 163,000 hectares along the Madeira River system, a historically rich placer belt where over 7 million ounces (Moz) of gold were dredged between the 1970s and 1990s.

Canary's hypothesis is that the gold, which fueled decades of artisanal dredging, originated from the Bolivian Andes, was carried into the Madeira Basin, and became trapped in a cemented, iron-rich layer known as Mocururu, Newell noted. Canary's technical team believes this layer forms a preserved paleoplacer surface that extends across much of its project area and may represent the primary source of the region's alluvial gold.

Over the past three years, Canary has conducted resistivity surveys, radiometrics, sonic drilling, and aircore drilling to map this horizon and confirm its presence beneath shallow cover across an approximately 80-kilometer corridor. Visible gold has been observed in Mocururu sediments and pan concentrates, and high-resistivity bands suggest the duricrust horizon lies 1–30 meters below the surface. Canary is now transitioning from concept to systematic drill testing.

From a technical perspective, BRAZ appears to be in its early Point of Recognition (POR) phase, according to Newell. After a period of consolidation, the shares broke out in 2025, reaching initial targets at CA$0.37 and CA$0.45. This movement coincided with increased awareness of the Rio Madeira story and an oversubscribed financing. Following these peaks, the stock pulled back but maintained a pattern of higher lows, supported by a rising trendline since early 2025. Recent trading suggests a potential island reversal, often indicating the end of a corrective phase. Volume has increased during rallies and decreased during pullbacks, suggesting quiet accumulation rather than distribution. Momentum (MACD) has turned positive again, and the 50-day moving average is attempting to rise above the longer-term 200-day. At recent prices in the CA$0.30–CA$0.33 range, the stock is near support with the next technical target around CA$0.60. If the January drill program yields encouraging results amid a strong gold market, a move toward the longer-term "big picture" target becomes more feasible, Newell said. The chart suggests the stock is poised rather than broken and could respond quickly to positive news.

"With the shares trading around CA$0.30–CA$0.33, we view Canary Gold Corp. as a Speculative Buy for investors seeking leveraged exposure to an emerging Brazilian gold story with meaningful drill catalysts ahead," he wrote.

¹About 4.11% of the company is owned by insiders and management and strategic corporations, including Inclination Earth Sciences Inc., with 5.08%. The rest is retail.

Other top shareholders include CEO Andrew Lee Smith with 2.74%, President Mark Tommasi with 0.69%, Hein Poulus with 0.54%, and Al Kanji with 0.14%.

Its market cap is CA$21.42 million with 72.88 million shares outstanding. It trades in a 52-week range of CA$0.19 and CA$0.48.