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🚨 BREAKING: US Federal Prosecutors have opened a criminal investigation into Fed Chair Jerome Powell.
First, what does this mean?
It means the government is now legally investigating the head of the Federal Reserve. They can demand documents, emails, and testimony.
This is not politics or media noise. This is a real criminal process.
Right now, the official reason being used is the Fed’s headquarters renovation project. But that part is not what markets are reacting to.
The real issue is this:
The Federal Reserve is supposed to be independent.
Interest rates should be decided by inflation, jobs, and economic data.
Not by fear of prosecutors or political pressure.
Powell himself admitted that legal threats could affect how the Fed makes decisions. That is massive.
Once markets feel that rate decisions are no longer purely economic, trust breaks.
That’s why:
- The dollar weakened
- Gold hit new highs
- Risk perception jumped
Investors are now asking a dangerous question: Are U.S. interest rates set by economics... or by power?
If the Fed loses independence, everything becomes unstable:
- Bonds become riskier
- Long-term yields rise
- Volatility increases
- Capital moves to hard assets
This is not about one man.
This is about whether the world can still trust the U.S. monetary system.