US Senator Tillis says the majority of Fed HQ overruns appear to be legitimate and the problem he has is the US AG putting Fed Chair Powell under investigation; reiterates have to end the DoJ investigation

Senator Tillis's comments signal growing political pressure on the Justice Department's investigation of Fed Chair Powell, which may influence perceptions of Fed independence. His push to end the investigation suggests potential volatility in regulatory discussions surrounding the Fed, possibly affecting market sentiment towards the USD and risk assets. If this leads to a more favorable operating environment for the Fed, it could impact interest rate expectations and consequently fixed income markets.