Turmoil at the Fed Sparks Crypto Decline

Rising bond yields have weakened stock markets, dragging cryptocurrency values lower. The latest Personal Consumption Expenditures (PCE) data met expectations, signaling inflationary pressures. Yet uncertainty looms as former President Trump's attempt to remove Federal Reserve member Lisa Cook embroils the central bank in a legal battle, unsettling risk markets.

Cook's legal team seeks a court order to block her ouster, alleging political motives behind Trump's move. The clash threatens the Fed's independence, with U.S. District Judge Jia Cobb fast-tracking proceedings. As Cook retains access to Fed resources despite presidential opposition, the institution faces unprecedented scrutiny.

Market turbulence reflects these institutional cracks. Cryptocurrencies, sensitive to macroeconomic instability, mirror traditional market jitters. The Fed's credibility crisis could Ripple through global finance, with digital assets caught in the crosscurrents of political and economic uncertainty.