Federal Reserve Chair Jerome Powell has recently gotten into trouble. The Department of Justice directly issued a subpoena last Friday to investigate his congressional testimony from June of last year. It sounds serious, but the focus is a bit strange—the charges relate to the renovation project of the Federal Reserve building.

Of course, Powell doesn't accept this. He responded forcefully: "This is completely unfounded! The charges have nothing to do with my testimony, nor with the renovation project itself—it's just an excuse." A straightforward and blunt response.

This political tug-of-war is something traders should pay attention to. The political pressure on the Federal Reserve Chair could ultimately be reflected in the pace of monetary policy. Market volatility often brews amid these uncertainties.