Breaking news caught the market off guard. According to Republican Congressman French Hill, Federal Reserve Chair Jerome Powell may be absent from the February congressional hearings due to a grand jury indictment by the Department of Justice. The issue stems from testimony related to headquarters renovations last June — which is now being targeted as the focus of a criminal investigation by the DOJ, with allegations of "perjury."

This has caused a complete uproar on Capitol Hill. Republican Senator Thom Tillis directly challenged the DOJ, vowing to block all new Fed nominations until the investigation results are out. Some other lawmakers have expressed deep concerns over the DOJ's interference in Federal Reserve affairs. The Fed officials have chosen to remain silent — a spokesperson refused to comment.

What is the real dilemma facing the market? If Powell truly is absent, that crucial policy signal window will be closed. The semiannual congressional testimony is an important channel for the market to understand the direction of monetary policy, and February is a particularly sensitive time. Once the signal is lost, both crypto markets and traditional financial markets will have to navigate in uncertainty. This situation is far more complex than a mere political drama.