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With Federal Reserve Chairman Jerome Powell’s term nearing its end, the New York Times has reported that an investigation has been launched into him.
According to a New York Times report citing sources, US federal prosecutors have launched an investigation into Federal Reserve Chairman Jerome Powell.
According to the report, Powell is accused of downplaying the scale of a renovation project for the Federal Reserve building during his testimony before Congress.
Powell Issues a Statement!
Federal Reserve Chairman Jerome Powell recently stated that he received a grand jury subpoena and was informed by the Department of Justice about a possible criminal case.
“…The U.S. Department of Justice informed me that it is considering criminal charges against me in relation to my Senate testimony last June. The matter is reportedly related to testimony concerning the renovation project of the Fed’s headquarters in Washington.”
However, Powell directly linked the issue to interest rate policy and the Fed’s independence, stating that the Justice Department investigation was a pretext for an attack on the Fed’s independence. He claimed it aimed to exert pressure on interest rate decisions.
Powell argued that the investigation was a tool the Trump administration used to pressure the central bank, describing the Justice Department’s actions, including issuing subpoenas and threatening indictments, as unprecedented.
Powell emphasized that the Fed is at a crossroads, facing a choice between continuing with evidence-based interest rate decisions or succumbing to political threats, highlighting the institution’s independence as a key focus.
Trump Has Also Issued a Statement!
US President Donald Trump also commented on the matter, stating that he was not involved in the US Justice Department’s investigation into Powell.
Trump stated that he had no involvement with the Justice Department’s subpoena against Powell.
“The subpoena that the Justice Department sent to Powell has absolutely nothing to do with policy interest rates or monetary policy.”
How Will This Affect Bitcoin?
Experts say that if the criminal investigation against FED Chairman Jerome Powell is successful, Bitcoin’s perceived position as a hedging asset could be strengthened.
HashKey Group analyst Tim Sun said that if the Justice Department’s case is successful, it would set an “extremely dangerous precedent.”
Sun added that if the investigation is successful, it would undermine and destabilize confidence in the entire dollar and the US Treasury system. This would benefit non-sovereign assets like Bitcoin.
“If the Fed falls under the chairman’s control, leading to a sharp depreciation of the dollar or a loss of control over interest rate expectations, Bitcoin may indeed be approaching its historic moment.”
While Powell’s term as chair ends this May, his membership on the Federal Reserve Board of Governors extends until January 2028. Powell has not yet commented on whether he plans to remain at the Fed after his term as chair ends.
*This is not investment advice.