US federal prosecutors open inquiry into Fed Chair Powell

Federal prosecutors have opened a criminal investigation into Fed Chair Jerome Powell regarding the renovation of the Federal Reserve's Washington headquarters and whether he lied to Congress about the scope of the project. This investigation could create uncertainty in the market, particularly regarding the reliability of monetary policy and expectations for future rate hikes. Legal issues surrounding the Fed's leadership typically introduce tension into the markets. The Fed's policies have significant implications for the financial markets, so any shifts in Powell's stance during upcoming meetings or announcements could have profound effects on currency and equity markets. Currently, there are no specified price levels or indicators; thus, trading signals remain undecided. Market reactions will likely hinge on Powell's statements and any announcements from the Fed, making it essential for investors to closely monitor these developments and adjust their strategies accordingly.