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

Don’t just see this as a simple renovation issue; there are deeper waters behind it! The investigation was authorized by an old acquaintance 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 are stalemated, the conflict has escalated to the judicial system.

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

This is not just about renovation overruns; it’s a direct clash of presidential power, the judicial system, and the independence of the central bank! If the situation escalates, the impact will go beyond a single building—it will shake 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!