U.S. Prosecutors Open Investigation Into Federal Reserve Chair, Shaking Financial Markets

 U.S. Prosecutors Open Investigation Into Federal Reserve Chair, Shaking Financial Markets

U.S. prosecutors have reportedly opened a criminal investigation into Federal Reserve Chair Jerome Powell, triggering uncertainty across global financial markets. The investigation is linked to allegations surrounding renovation costs and financial management issues related to the Federal Reserve’s headquarters.

According to sources familiar with the matter, investigators are examining whether federal rules were violated during the approval and execution of expensive renovation projects. While no formal charges have been filed, the probe has already raised serious concerns about transparency and accountability at the highest level of the U.S. central bank.

The news sent shockwaves through financial markets. The U.S. dollar weakened, while gold prices surged as investors sought safe-haven assets. Stock markets experienced volatility, reflecting fears that the investigation could undermine confidence in the Federal Reserve’s independence and leadership.

The Federal Reserve plays a critical role in managing inflation, interest rates, and economic stability in the United States. Any challenge to its credibility could have far-reaching consequences, not only for the U.S. economy but also for global financial systems.

Supporters of Powell argue that the investigation is politically motivated and warn that interference with the central bank could damage long-standing norms. Critics, however, say the probe highlights the need for greater oversight and financial accountability.

As the investigation unfolds, policymakers, investors, and international markets are watching closely. The outcome could influence future monetary policy decisions and reshape trust in one of the world’s most powerful financial institutions.