Powell Faces U.S. Attorney’s Probe Amid Fed Renovation Controversy

Jerome Powell, Federal Reserve Chair, faces a probe from the U.S. Attorney’s Office regarding his congressional testimony about a Federal Reserve HQ renovation, causing potential market unease.

Concerns over potential political interference in monetary policy arise, impacting investor sentiment as markets eye alternative assets, though no direct effects on Bitcoin, Ether, or XRP are observed.

The U.S. Attorney’s Office is investigating Federal Reserve Chair Jerome Powell’s congressional testimony regarding a $2.5 billion renovation, adding strain to already tense relations with the administration.

This event underscores the ongoing conflict over Federal Reserve independence, potentially affecting market stability and investor strategies.

U.S. Attorney Probes Powell’s Renovation Testimony

The U.S. Attorney’s Office is examining Jerome Powell’s congressional statements on the Federal Reserve’s headquarters renovation. Powell claimed in a video that the probe is tied to Fed independence, not his testimony.

The investigation relates to Powell’s statements about the renovation project’s costs. President Trump has previously criticized Powell and these expenses, intensifying pressures on the Fed’s policies.

Federal Reserve’s Autonomy at Risk?

The investigation has unsettled some government representatives. Senator Lisa Murkowski argued that the probe could threaten Federal Reserve’s independence and economic stability, expressing concern over potential coercion.

Financial markets, particularly those associated with cryptocurrencies such as Bitcoin and Ether, may experience volatility due to uncertainty surrounding U.S. monetary policy leadership and direction.

Past Trump-Powell Clashes Revived

Historically, disagreements between a U.S. President and the Federal Reserve Chairman, as seen in past Trump-Powell tensions, often increase market unpredictability, affecting investment strategies, especially in decentralized assets.

Experts note that such probes could lead to increased risk aversion, prompting investors to seek safer havens, impacting specific sectors including cryptocurrency, which is sometimes viewed as a hedge.