🚨 THE DOJ JUST DECLARED WAR ON THE FEDERAL RESERVE.
Jerome Powell confirmed it: Grand jury subpoenas have been served.
But he didn’t just admit to a legal probe.
He explicitly linked the threat of criminal indictment to the Fed’s interest-rate decisions.
HERE IS THE REALITY:
The Fed angle is only part of it.
This is a textbook attack on central bank independence.
They’re leading with the HQ renovation because it’s easy to explain.
THAT IS THE DISTRACTION.
The market reaction tells the real story.
S&P futures slipped, the dollar weakened, and Gold ripped to another record on independence risk.
Why? Because the market smells fear.
Powell’s message was simple: Are rates set by economic data? Or by political intimidation?
If investors start pricing in "political rates," you get higher term premiums and massive bond volatility.
THAT SPILLS INTO EVERYTHING.
On the surface, risk assets might ignore this for a bit.
BUT THEY WON'T IGNORE IT FOREVER.
A credibility hit to U.S. policy is rocket fuel for hard assets (Gold proved it immediately).
Once funding tightens and volatility forces deleveraging, the narrative shifts fast.
Watch the long end (10s/30s) when cash Treasuries reopen.
THE GOAL ISN'T JUSTICE. THE GOAL IS CONTROL.
I’ve been in macro for 20+ years, I’ve called every major market top and bottom, and trust me when I say this: a market crash is coming. They will crash it on purpose.
When I exit the markets, I’ll say it here publicly for everyone to see.
Those who still haven’t followed me will regret it.
