A recent interesting news broke — the U.S. District Attorney's Office in Washington, D.C. is conducting a criminal investigation into Federal Reserve Chair Jerome Powell. The investigation involves the renovation project at the Federal Reserve headquarters and whether Powell made false statements to Congress regarding the project's scope.

According to informed officials, the scope of the investigation includes analyzing Powell's public statements and a comprehensive review of related expenditure records. The investigation was approved as early as November last year. The lead is U.S. Attorney Jenny Piro — a long-time ally of Trump. It is not yet certain whether Piro has initiated a grand jury or issued subpoenas, but prosecutors in her office have contacted Powell's staff multiple times requesting documents related to the renovation project.

What is the background? Trump has been openly criticizing Powell, with a simple reason — he refuses to cut interest rates significantly as Trump demands. Trump has even threatened to remove Powell from his position and has threatened to sue over the $2.5 billion Fed renovation project, accusing Powell of "incompetence."

What does this mean for the crypto market? Simply put, changes in Federal Reserve policy directly affect overall market liquidity and risk appetite. If this investigation ultimately impacts the Fed's independence or Powell's policy direction, the timing of rate cuts could face new uncertainties. This will create chain reactions in the price expectations of BNB, ETH, and other mainstream cryptocurrencies. Investors should closely monitor this development.