U.S. federal authorities are investigating Fed Chair Jerome Powell, according to sources familiar with the matter. The criminal probe, being conducted by the U.S. Attorney's Office in Washington, centers on the Federal Reserve's headquarters operations and governance practices.

This development comes as scrutiny over central bank leadership intensifies amid ongoing debates about monetary policy direction. Powell's tenure has been marked by aggressive interest rate adjustments aimed at combating inflation—a stance that has reverberated across financial markets, including digital asset valuations.

The investigation's scope and potential outcomes remain unclear, though any significant shifts in Federal Reserve leadership could have material implications for policy continuity and market sentiment. Market participants are monitoring how this situation unfolds, given the Fed's outsized influence on global financial conditions and capital allocation decisions.