Jerome Powell, Chair of the Federal Reserve, has been served with grand jury subpoenas from the Justice Department—a significant legal development that signals potential criminal indictment threats. This represents a dramatic intensification in the Trump administration's confrontational stance toward the central bank.

The move raises critical questions about institutional independence and monetary policy continuity. Markets are watching closely: tensions between political pressure and Federal Reserve autonomy could reshape rate expectations, influence inflation narratives, and shift asset allocation strategies across equities, bonds, and crypto. Historical precedent shows that political friction with central banks often creates volatility spikes and forces investors to reassess risk exposure. The outcome of these legal proceedings could redefine the policy landscape heading into the next economic cycle.