monetarypolicy

January 12, 2026 — Washington, D.C.
In a historic escalation that’s rattling global markets, the U.S. Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome H. Powell, the central bank’s top policymaker. (ABC News)

The inquiry — confirmed by Powell himself in a statement Sunday night — centers around his testimony to Congress and a multi-year renovation project of the Federal Reserve’s headquarters. Prosecutors have issued grand jury subpoenas and are examining whether his public statements were truthful, though no formal charges have been filed yet. (ABC News)
📉 Immediate Market Impact
The unfolding situation has already sent ripples across financial markets:
Stocks and futures turned negative as uncertainty spiked. (The National)U.S. dollar softened, while safe-haven assets like gold rallied. (The National)Investors are closely watching volatility indicators as traders price in potential disruption to monetary policy.
🧠 What Powell Says
Powell labelled the investigation “unprecedented” and expressed deep respect for the rule of law, but framed the legal threat as part of broader political pressure — particularly related to interest-rate decisions. He said the move raises fundamental questions about the independence of the Federal Reserve.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment … rather than following the preferences of the president.” (mint)
🏛️ Political & Institutional Backdrop
The investigation unfolds amid a protracted clash between the Fed and the Trump administration, with tensions over interest-rate policy and demand for aggressive cuts. Powell has resisted political pressure, defending the Fed’s mandate for price stability and maximum employment.
Critics say that targeting the Fed’s chair could undermine long-standing norms designed to keep monetary policy insulated from political influence — a foundation of market trust and global confidence.
🌍 What This Means for Crypto & Global Finance
While the investigation is rooted in U.S. institutional conflict, the global implications are significant:
Currency markets could see heightened volatility. Central-bank independence debates may intensify worldwide. Crypto markets — already sensitive to macro uncertainty — may react to shifts in risk sentiment and dollar strength.
📌 What Happens Next
No charges have been announced yet.Powell’s term as Fed Chair is set to expire in May 2026.The investigation’s evolution will be watched closely by markets, policymakers, and international investors.
Stay tuned for updates as this unprecedented financial and political story continues to unfold.
#FederalReserve #JeromePowell #MonetaryPolicy #StrategyBTCPurchase #BinanceNews
$BTC
$XRP

$SOL

A unprecedented situation is unfolding in the United States ⚠️: The Department of Justice has launched a criminal investigation against current Chair of the Federal Reserve Jerome Powell.
The formal reason was his testimony before the Senate regarding the reconstruction of Federal Reserve buildings in Washington 🏛️ and possible inaccuracies in the project's cost estimation.

*A Key Fed Figure Breaks the Silence: Deep Rate Cuts Coming by 2026**
Last night, Fed Governor **Waller** dropped the ambiguity — and with it, every remaining mask.
No hints.
No coded language.
Just a direct message:
> “To withstand mounting economic pressure, interest rates will need to fall **by more than 100 basis points in 2026**.”
With that, the cards were laid on the table.
Suddenly, months of market speculation became irrelevant.
There’s only one way to read this:
This isn’t about fine-tuning policy — **it’s about stress behind the scenes**.
The narrative has completely flipped:
From *“fight inflation at all costs”*
To *“stabilize the economy before something breaks.”*
A full **180-degree pivot**.
That shift signals something deeper — the risks beneath the surface are far larger and more dangerous than headline data suggests. The Fed has seen fractures the public hasn’t yet noticed.
A rescue plan, effectively **pre-announced two years in advance**, is now on the table.
The warning flare has been fired.
The storm isn’t a surprise anymore — **it’s scheduled**.
#Fed #RateCuts #Macro #markets #MonetaryPolicy