DOJ probe of Powell raises questions over Fed independence and bitcoin's role

Beincrypto reports the US Department of Justice is investigating Federal Reserve Chair Jerome Powell, a development that has renewed scrutiny of the Fed’s independence and shaken investor confidence. In an extraordinary video statement, Powell said prosecutors are probing the Fed’s renovation of its Washington headquarters and described the move as the latest step in a year-long effort by the Trump administration to pressure the Fed to cut interest rates or push him to resign before his term ends in May.

He warned the administration’s actions risk undermining the independence of monetary policy, saying: “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” Markets reacted as the dollar weakened, gold hit record highs, long-term Treasury yields rose and S&P 500 futures fell, reflecting investor unease about US monetary policy.

Crypto effects have been limited so far: Bitcoin traded within the $90,000 to $93,000 range, and the episode has renewed debate over whether Bitcoin functions as a non-sovereign hedge or is viewed primarily as a speculative, high-volatility asset. What happens next is uncertain.

Key Topics

Business, Jerome Powell, Federal Reserve, Trump Administration, Bitcoin, Us Dollar