Fed Chair Powell faces DOJ’s criminal probe

Federal prosecutors person reportedly opened a transgression probe into Federal Reserve Chair Jerome Powell.

The probe is focusing connected his June grounds earlier Congress regarding the cardinal bank’s $2.5 cardinal renovation of its Washington, D.C., headquarters.

During the Senate proceeding successful June, Powell had defended the renovation task arsenic necessary safety and infrastructure upgrades. He had denied allegations of excessive luxury items and explaining outgo changes.

Related: Trump’s adjacent Federal Reserve prime could beryllium a crypto executive

In a video connection connected Sunday, Powell responded that the probe was the effect of “ongoing pressure” from the medication related to involvement complaint policy.

“The menace of transgression charges is simply a effect of the Federal Reserve mounting involvement rates based connected our champion appraisal of what volition service the public, alternatively than pursuing the preferences of the President,” Powell said.

President Donald Trump has repeatedly criticized Powell implicit complaint hikes, arguing that monetary argumentation should align much intimately with his administration’s economical priorities.

Trump has confirmed helium does not mean to renominate Powell erstwhile his word expires successful May 2026, and has openly suggested helium should person a accidental successful complaint decisions.

The probe strikes astatine the precise halfway of the U.S. fiscal system’s credibility, and that has large implications for crypto.

Bitcoin (BTC) and different integer assets person agelong been positioned arsenic trustless, decentralized alternatives to politicized monetary systems. If the world’s astir influential cardinal bank, the Federal Reserve, is perceived arsenic being politically compromised, it strengthens Bitcoin’s communicative arsenic a neutral, censorship-resistant signifier of money.

Investors whitethorn progressively presumption BTC arsenic a hedge against authorities interference successful monetary policy, peculiarly if the Fed’s decision-making is seen arsenic politically constrained.

Something akin happened successful the 2019–2020 standoff betwixt Trump and Powell, erstwhile the president repeatedly accused the Fed of keeping rates “too high” and slowing economical growth.

Trump adjacent claimed helium had the authorization to demote Powell.

During that period, Bitcoin’s “digital gold” communicative gained traction. Investors sought refuge successful non-sovereign assets amid concerns implicit governmental power successful cardinal banking.

Ironically, Trump's 2019 tweet declaring helium was “not a instrumentality of Bitcoin and different cryptocurrencies” lone accrued the entreaty of decentralized alternatives implicit fiat.

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