Federal Reserve Chair Jerome Powell confirmed that he is currently under a federal criminal investigation related to a $2.5 billion renovation project of the Fed’s headquarters.

The case exposes an escalating confrontation between Powell and President Donald Trump’s camp, raising concerns over the Federal Reserve’s independence.

Powell argues that the investigation is being used as political pressure to force the FED to soften its hawkish interest rate policy stance.

U.S. stock markets reacted negatively, with major indexes falling amid growing institutional and policy uncertainty.

Hedge assets such as gold and #bitcoin rose, signaling that investors are looking for alternatives less dependent on traditional policy and political stability.

This event serves as a major stress test, with potentially far-reaching consequences for market confidence and the credibility of the U.S. financial system’s independence. #USNonFarmPayrollReport