The U.S. Department of Justice's investigation into Federal Reserve Chair Jerome Powell has shifted dynamics within the Federal Reserve, contrary to Trump's expectations. The likelihood of Powell remaining in his position until 2028 has increased, while the chances of Christopher Wall, a more hawkish candidate, becoming the next Fed Chair have surpassed those of Trump ally Kevin Hassett. Polymarket data shows a significant drop in the probability of Powell leaving the Fed by May 30, from 74% to 45%, and by the end of the year, from 85% to 62%. Meanwhile, Kevin Warsh, another hawkish candidate, has gained more support than Hassett in the prediction markets. This development comes amid an informal agreement between Trump and Powell, which appears to have been disrupted, potentially prolonging Trump's struggle with the Federal Reserve.