Washington is not very peaceful lately! The federal prosecutors have launched a criminal investigation into Federal Reserve Chair Jerome Powell, stemming from the $2.5 billion spent on renovations at the Fed headquarters. The prosecutors are not only scrutinizing how the money was spent but also questioning whether Powell avoided the issue during his congressional testimony.

Don’t mistake this for a simple renovation problem; there are deeper waters behind it! The investigation was approved by a familiar figure from the Trump camp, and Trump and Powell have long had a tense relationship over interest rate cuts. Trump has pressured, publicly criticized, privately threatened, and even considered replacing Powell. Now that interest rate disputes have cooled, they’ve directly escalated to the judicial system.

Even more astonishing, Trump has privately hinted at his preferred successor. Although Powell’s term is nearing its end, the board members can serve until 2028, and whether he stays or leaves is no longer solely his decision.

This is not just about overspending on renovations; it’s a direct clash of presidential power, the judiciary, and the independence of the central bank! If the situation escalates, the impact will not only be on a building but also on market trust in the dollar, the Fed, and the rules. The crypto market is also influenced by the broader environment, so everyone must stay alert and discuss the future developments!