Recent encounters of Federal Reserve Chair Jerome Powell may be the most explosive news in the financial circle this year. The U.S. Department of Justice surprisingly threatened to prosecute him criminally, and there is a strong political undertone behind this matter.

The Department of Justice dug up old records of Powell testifying before the Senate last June, insisting on using his testimony regarding construction projects as an article. Subpoenas from the grand jury have already been issued. But Powell chose not to retreat; instead, he responded frankly: this is not an investigation at all, but purely a synonym for political pressure.

The core of this confrontation is actually very painful—can the Federal Reserve still independently set interest rate policies based on economic data? Or must it obediently follow political pressure? Powell warned publicly that once the independence of the Fed is compromised, the consequences could be very serious. He stated that he would not be intimidated into retreat, but the government’s ongoing pressure is indeed unprecedented.

The impact on the crypto market cannot be underestimated. If the independence of the Federal Reserve wavers, it could lead to unpredictable changes in interest rate policies. Cryptocurrencies like Bitcoin and Ethereum are closely related to macro liquidity. Once Fed policies fall into political games, the entire crypto circle will face intense volatility. In the short term, Powell’s firm stance may temporarily stabilize market expectations, but political risks are now evident, and the future market environment may become even more complex. The fundamental landscape of the financial market is being redefined, and this change cannot be ignored.