The latest developments surrounding the criminal investigation into Federal Reserve Chair Powell are raising fresh concerns about central bank independence, according to Goldman Sachs' chief economist. When political pressure mounts on the Fed leadership, it inevitably clouds the institution's ability to make decisions based purely on economic fundamentals rather than political considerations. This matters deeply for markets. History shows that when central bank independence gets compromised—even the perception of it—volatility tends to spike. Investors start second-guessing policy direction, which ripples across asset classes including crypto. The Fed's credibility hinges on one core principle: they call the shots on interest rates and monetary policy free from executive interference. Once that credibility erodes, all bets are off. For traders watching this situation unfold, the real question isn't about Powell himself, but what it signals about institutional guardrails going forward.