The U.S. Department of Justice is investigating Federal Reserve Chair Jerome Powell, intensifying scrutiny over the central bank's independence and impacting market confidence. Powell revealed the investigation, related to the Fed's headquarters renovation, in a video statement, warning that the Trump administration's actions could undermine monetary policy independence.
Following Powell's announcement, the dollar weakened against major currencies, while gold prices surged to record highs as investors sought safe-haven assets. Long-term U.S. Treasury yields rose, reflecting concerns about the Fed's ability to manage inflation. The S&P 500 futures also declined, indicating growing unease about U.S. monetary policy reliability.
Bitcoin's price remained stable between $90,000 and $93,000, as the crypto market assesses its role as a hedge or speculative asset amid political interference concerns. The ongoing debate over Bitcoin's function in the financial system may intensify if confidence in the U.S. dollar continues to waver.
DOJ Investigation of Fed Chair Powell Raises Market Concerns
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