federalreserve

A major political and financial confrontation is unfolding in the US, and it could impact stocks, crypto, gold, silver, and global markets.
⚖️ What’s Happening?
Former President Donald Trump and Federal Reserve Chair Jerome Powell have been in open conflict.
Trump has consistently pushed for interest rate cuts
His belief: when rates are cut, liquidity increases
More liquidity usually means stocks, crypto, and commodities outperform
Trump’s past presidencies are known for strong market performance, and he wants to repeat that playbook.
🏦 Powell Refuses to Bow Down
Jerome Powell has refused political pressure, repeatedly stating:
“The Federal Reserve is an independent institution.”
This resistance is unprecedented — no US President has ever pressured the Fed this openly.
🔍 The Investigation Twist (June 2025)
A new angle changed everything:
The 90-year-old Federal Reserve building underwent renovation
Cost reportedly reached $25 billion
An investigation was launched into misuse of public funds
Recently, the US Department of Justice upgraded this probe into a criminal investigation.
🎥 Powell’s Response
Powell broke his silence and released a public statement saying:
The criminal investigation is politically motivated
It began because he refused to cut rates under pressure
Rate cuts should happen only when it benefits the American public
This marks the first time a Fed Chair openly accused political interference.
🌍 Why Markets Are Nervous
Markets are now pricing in a dangerous possibility:
What if the Federal Reserve is no longer independent?
If the world’s most powerful central bank loses independence:
US financial credibility weakens
Global uncertainty rises
Long-term economic stability is questioned
📉 Market Implications
Rate cuts under pressure → higher inflation risk
Extreme scenario → hyperinflation fears
Investors typically move toward safe and scarce assets
🟡 Assets That May Benefit from This Uncertainty
Gold
Silver
Bitcoin
Historically, these assets outperform during monetary and political instability.
🧠 Final Thought
Short-term, uncertainty can boost hard assets.
Long-term, political control over monetary policy is dangerous for the global financial system.
This is not just US news — it affects the entire world.
📌 Stay informed. Volatility is rising.
#FederalReserve #DonaldTrump #TrendingTopic #JeromePowell
$BTC

A shocking twist in Washington: U.S. Federal Reserve Chair Jerome Powell is now at the center of a criminal probe over a ballooning renovation budget that soared from the original $1.9 billion to $2.5 billion. According to anonymous insiders familiar with the matter, the Justice Department has launched a criminal investigation, and Powell is directly implicated.

Criminal Probe Targets Alleged Misleading Testimony to Congress
The investigation is being led by the U.S. Attorney’s Office in Washington, D.C., and reportedly received approval in November from federal prosecutor Jeanine Pirro. Its aim is to determine whether Powell intentionally misrepresented the costs and details of the renovation during his testimony before Congress.
While it remains unclear whether a grand jury has been convened or if official subpoenas have been issued, Powell’s team has already been contacted and asked to submit documents — triggering a media storm and growing pressure on the White House, which has so far declined to comment.

Trump Demands Powell’s Resignation
Sources close to the Trump administration report that the president has expressed ongoing dissatisfaction with Powell’s leadership at the Fed, particularly regarding the costly renovation project. The first formal complaint reportedly arrived in July 2025, when Russell Vought, Director of the Office of Management and Budget, sent a letter to Powell raising “serious concerns” about his management of both the Federal Reserve and the renovation effort.
According to the 2025 budget documents, the increased costs stem primarily from rising prices in construction materials, especially in HVAC, electrical, and plumbing systems. The Fed insists the budget merely reflects market conditions, not mismanagement.

Powell Responds: “This Is Political Pressure”
On Sunday, January 11, Powell publicly confirmed that the Federal Reserve had received grand jury subpoenas. In a written and video statement, he called the investigation an unprecedented action with broader political motives.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell said. “But this investigation is part of a broader pattern of threats and pressure coming from the administration aimed at influencing monetary policy.”
He warned that criminal charges are being used as a weapon to sway the Fed’s decisions on interest rates, which he said are based on economic data — not the president’s agenda. “The real question is whether the Fed can continue to set interest rates based on facts and public interest, or whether monetary policy will be hijacked by political intimidation.”

Trump Has a Replacement Ready
President Trump has already stated that he has a replacement lined up to take Powell’s role once his term ends in May 2026. Although the name has not been made public, betting markets like Polymarket currently show Kevin Hassett, head of the National Economic Council, as the leading candidate.

Powell’s Crisis Sparks Nationwide Debate
The legal battle surrounding the Fed chair has sharply divided public opinion and rattled investors. Some accuse Powell of misleading Congress and mishandling public funds, while others see him as a victim of political bullying. Regardless of how it ends, one thing is certain: the independence of America’s central bank is now at the heart of an intensely politicized struggle.

#Fed , #JeromePowell , #USPolitics , #interestrates , #FederalReserve

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Is Trump Fed Rate Pressure Pushes Fed Chair Jerome Powell Into Crisis?
Highlights
Fed Chair Jerome Powell accuses the DOJ of using legal threats to pressure the Fed on interest ratesInvestigation followed shortly after the Fed defied presidential rate-cut demandsExperts warn this could weaken central bank independence in the U.S.
What is happening?
U.S. Federal Reserve Chair Jerome Powell has publicly accused the Department of Justice (DOJ) of threatening him with criminal prosecution as a way to pressure the Federal Reserve on interest rate decisions. 
On January 11, 2026, Powell confirmed that the DOJ served grand jury subpoenas related to his June 2025 testimony before Congress about a $2.5 billion renovation of Federal Reserve buildings.
While the investigation is officially tied to that testimony, Powell says the case has little to do with construction costs and much more to do with political pressure over monetary policy.
Source: Official X

What Powell is actually accusing the government of?
Powell made an unusually direct statement, saying the criminal threat is a “pretext” and that the real motive is retaliation for the Fed’s refusal to follow President Trump’s demands to cut interest rates. 
According to Powell, the administration is using the legal system as a tool of intimidation to influence how the central bank sets rates.
This marks the first time a sitting Fed Chair has openly accused the executive branch of weaponizing criminal prosecution to control monetary policy.
Source: X
Why do interest rates matter here?
Interest rates affect everything from inflation and jobs to government borrowing costs. President Trump has repeatedly pushed the Fed to cut rates sharply, arguing that lower rates would boost growth and reduce the cost of servicing federal debt.
However, on December 18, 2025, the Federal Open Market Committee (FOMC) decided to hold rates steady, citing economic data and inflation risks. Just 21 days later, the DOJ subpoenas were issued—fueling concerns that the investigation is linked to that decision.
Source: X
Why is this a big deal?
The Federal Reserve was designed to operate independently of political power since its creation in 1913. Central bank independence is considered essential for stable economic policy, preventing short-term political goals from driving interest rate decisions.
If a president can pressure the Fed through legal threats, experts warn it could permanently weaken this independence—not through legislation, but through fear.
What did Powell say clearly?
Jerome stated plainly that the threat of criminal charges is a consequence of the federal setting of rates based on evidence and economic conditions, rather than presidential preferences. 
He emphasized that this situation is about whether monetary policy will be guided by facts—or by political intimidation. He also said he intends to continue doing the job the Senate confirmed him to do, “with integrity.”
If Powell gives in, Fed interest rates could be cut to match White House demands, setting a dangerous precedent for future chairs.If he resists, he could face prosecution or removal, with a more compliant replacement installed. Either outcome risks undermining the Fed’s independence.
Market and political reaction
Markets reacted quickly. Stock futures fell, the dollar weakened slightly, and volatility increased. Politically, concern crossed party lines. Republican Senator Thom Tillis questioned the DOJ’s credibility, while others warned of executive overreach.
Why do people say “most won’t realize it yet”?
Because the issue is being framed as a building renovation investigation, many may miss its deeper meaning. But analysts warn this could represent the most significant shift in U.S. monetary governance in over a century—one whose consequences may only become clear months from now.
Conclusion
Jerome's statement signals a serious threat to Federal Reserve independence, raising concerns that political pressure and legal intimidation could reshape how U.S. monetary policy is decided.

Visit: CoinGabbar

#TRUMP #JeromePowell #FederalReserve #interestrates #ratecuts