Federal Reserve Chair Jerome Powell faces a criminal investigation over renovations at the Fed headquarters, sparking concerns about presidential influence on monetary policy. Global markets react with gold surging to record highs and Treasury yields fluctuating. The probe threatens Fed independence and future leadership decisions, causing bipartisan Senate opposition.

Powell’s defiance against the investigation strengthens his standing among investors, highlighting the clash between Fed autonomy and political pressure. Bipartisan Senate members, like Senator Thom Tillis, condemn the probe as an attack on Fed independence. The market grapples with the uncertainty of future Fed policy decisions, with Kevin Hassett favored for the next Fed Chair nomination.

The investigation into Powell raises questions about the future of Fed policy decisions and institutional independence. The Wall Street struggle to price in the uncertainty is reflected in prediction markets, where odds of Powell stepping down as Fed Governor have increased. The ongoing debate highlights the delicate balance between evidence-based policy and political influence.

Read more at Yahoo Finance: Gold Rallies, VIX Spikes as Fed Chair Powell Responds to Criminal Indictment