Federal prosecutors have opened up a criminal investigation into Fed Chair Powell over the central bank’s renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project, NYT reports citing officials

Federal prosecutors have opened up a criminal investigation into Fed Chair Powell over the central bank’s renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project, NYT reports citing officials.

The news regarding a criminal investigation into Fed Chair Powell could create uncertainty around the Federal Reserve's independence and credibility. Such developments may lead to volatility in the markets, especially in USD and fixed income, as investors reassess their outlook on monetary policy and potential shifts in leadership should this investigation escalate. This is a significant event that could impact market sentiment across various asset classes.