Political Pressure Mounts on Fed Chair Powell Amid Criminal Probe

Treasury Secretary Steven Mnuchin revealed President Trump's daily inquiries about Federal Reserve Chair Jerome Powell, stating the president has 'frequently expressed disappointment' with his leadership. The remarks come as Powell faces a DOJ investigation into alleged false statements to Congress regarding the Fed's $1.2 billion headquarters renovation.

Mnuchin offered no defense of Powell, instead calling for systemic reforms at the central bank. 'The institution needs thorough overhaul,' he told Fox Business, emphasizing the Fed's lack of accountability despite its outsized impact on markets. The political clash coincides with heightened volatility in crypto markets, where Bitcoin (BTC) and ethereum (ETH) have shown inverse correlations to Fed policy expectations.

Market analysts note the investigation could create near-term uncertainty for rate-sensitive assets, including crypto majors like Solana (SOL) and Polygon (MATIC), which have recently decoupled from traditional risk assets. The situation bears watching for traders on Binance, Coinbase, and Kraken, where Fed policy speculation often drives afternoon liquidity patterns.