Powell Perjury Charges Spark Fed Uncertainty, Bitcoin Rally
Republican Rep. Anna Paulina Luna has filed criminal perjury charges against Federal Reserve Chair Jerome Powell, alleging he misled Congress on the $2.5 billion renovation of the Eccles Building at the Federal Reserve’s Washington headquarters. Luna claims Powell denied luxury finishes—marble floors, private dining room and rooftop terrace—that pushed costs above initial estimates. If convicted, Powell could face fines and up to five years in prison.
These perjury charges intensify political risk for the Fed. Former President Trump has repeatedly called for interest rate cuts and threatened to remove Powell, while some GOP senators warn that ousting him would undermine Federal Reserve independence and roil U.S. markets. Potential successors include Governors Christopher Waller, Kevin Warsh and Trump adviser Scott Bessent.
Traders are now pricing in greater uncertainty around the Fed’s interest rate path. Upcoming U.S. macro releases—June CPI, PPI, retail sales and jobless claims—will be closely watched for clues on monetary policy. Meanwhile, Bitcoin (BTC) briefly surged past $123,000, underlining Bitcoin’s role as a non-sovereign hedge against dollar volatility. Crypto traders should track the Justice Department probe, political shifts at the Fed and key economic data to manage market volatility and seize trading opportunities.
Bullish
The perjury charges against Powell amplify uncertainty over Fed policy and interest rate paths. Heightened political risk at the Federal Reserve erodes confidence in the U.S. dollar, driving investors toward alternative assets like Bitcoin. The recent Bitcoin rally past $123,000 reflects this shift, as traders seek hedges against potential dollar volatility. In the short term, Bitcoin stands to benefit from continued demand amid Fed turmoil and macroeconomic data releases. Over the longer term, sustained political pressure on rate decisions could keep markets choppy, but persistent concerns about dollar strength and institutional trust should support Bitcoin’s price floor. Thus, the net impact is bullish for Bitcoin.