Trump-Backed Criminal Probe Into Jerome Powell Raises New Threats to Fed Independence in 2026

On Sunday, Federal Reserve Chair Jerome Powell condemned a new criminal investigation into the Fed's headquarters renovation as politically driven and linked to President Donald Trump's push for lower interest rates. The probe, centered on whether Powell misled Congress about the project, comes months before his term ends in May 2026 and as Trump prepares potential successors more supportive of rate cuts. Heightened political pressure on U.S. monetary policy is adding to volatility in traditional markets and crypto, where assets like Bitcoin often react sharply to Fed rate signals.