# PowellUnderCriminalInvestigation

No matter whether Powell faces criminal investigation or not, the market is first trading on "credibility risk"
In financial markets, the influence of news often precedes its authenticity. The rumors surrounding “Powell facing a criminal investigation” have attracted significant attention not because of the investigation itself, but because it directly points to a core issue — whether the independence of the Federal Reserve is being eroded.
For the market, the value of the Federal Reserve is not just its interest rate tools, but its institutional credibility. Once the top officials of the cent

Safe-haven assets strengthen, a vote of no confidence in "institutional uncertainty"
If the market continues to believe in related rumors, you will see a typical phenomenon: non-credit assets like gold and silver strengthen, while the USD and risk assets experience amplified volatility. This is not a denial of any policy, but a reassessment of "institutional stability."
When the central bank itself becomes an uncertain factor, funds will naturally seek assets that do not rely on the backing of a single institution. This is also why similar rumors often create phased benefits for precious metal

Powell's criminal investigation truly impacts not interest rates, but the policy anchor
Many people's first reaction is: will this affect the pace of rate cuts? But the deeper impact lies in whether the Fed's "policy anchor" begins to loosen. Over the past few decades, the market has assumed that the Federal Reserve has a high degree of independence from political and judicial influences, and this expectation itself acts as a stabilizer.
Once this expectation is shattered, the market will have to reprice the "policy continuity risk." Every future rate decision and statement will carry addition

The real risk does not lie in the event itself, but in the "precedent effect."
From a long-term perspective, the market's greatest concern is not Powell personally, but whether a precedent has been set. If central bank officials are more frequently involved in judicial or political battles in the future, monetary policy will inevitably be labeled with more uncertainty.
This will increase the risk premium for global assets, especially long-term bonds and overvalued assets. In other words, even if the event eventually subsides, the "psychological shadow" it leaves behind may persist.
Therefore,

#PowellUnderCriminalInvestigation — Headline Risk and Market Psychology
As of 12 January 2026, reports and market chatter circulating around U.S. Federal Reserve Chair Jerome Powell and the possibility of a criminal investigation have introduced heightened uncertainty across global financial markets. It is critical to stress that no confirmed charges, official statements, or legal conclusions have been announced. However, in modern financial markets, perception often moves faster than verification, and even unconfirmed headlines involving key policymakers can influence short-term market behavi

Fed Chair Powell responds after Federal prosecutors open a criminal investigation into him:
"The threat of criminal charges is a consequence of the Fed setting rates based on our best assessment of what will serve the public, rather than following the preferences of the President," he says.
#PowellUnderCriminalInvestigation
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White House's Leavitt: Trump did not direct DOJ officials to investigate Federal Reserve Chair Powell
#PowellUnderCriminalInvestigation