The recent encounter with Federal Reserve Chair Jerome Powell might be the most explosive news in the financial world this year. The U.S. Department of Justice has actually threatened to pursue criminal charges against him, and there's a strong political undertone behind this.

The DOJ dredged up old allegations from Powell’s testimony before the Senate last June, deliberately using his statements about construction projects as a pretext. Subpoenas from a grand jury have already been issued. But Powell chose not to back down; instead, he responded frankly: this is not an investigation at all, but purely a political pressure tactic.

The core of this confrontation is quite revealing—can the Federal Reserve still independently set interest rates based on economic data? Or is it now obediently succumbing to political pressure? Powell warned publicly that once the Fed’s independence is compromised, the consequences could be severe. He stated he would not be intimidated into retreat, but the ongoing government pressure is unprecedented.

The impact on the crypto market should not be underestimated. If the Fed’s independence wavers, it could lead to unpredictable changes in interest rate policies. Cryptocurrencies like Bitcoin and Ethereum are closely linked to macro liquidity; once Fed policies become entangled in political games, the entire crypto space could face intense volatility. In the short term, Powell’s firm stance might temporarily stabilize market expectations, but political risks are now front and center, and the future market environment may become even more complex. The fundamentals of the financial markets are being redefined, and this time, the changes cannot be ignored.