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Recently, news that the Federal Reserve Chairman is under investigation by the Department of Justice has caused a frenzy in the market. The investigators issued formal subpoenas and even threatened to prosecute, but Powell himself did not back down; instead, he openly stated that this was political pressure used as an excuse to create momentum for rate cuts.
Interestingly, this incident has actually stimulated the inflow of safe-haven funds. BTC and ETH rose in response, and gold even broke through $4,600 to hit a new high. What does this reflect? Concerns about the credibility of the dollar are intensifying. When political risks rise, investors instinctively flock to safe-haven assets like Bitcoin and precious metals.
Bank of America’s latest warning is even more intriguing. They believe this investigation could deepen internal divisions within the Federal Reserve, making rate cuts more difficult. Some analysts even provided data: the probability of Powell resigning by the end of the year has dropped to 57%. What does this mean? Market uncertainty about the Fed’s policy direction is increasing, and this uncertainty often boosts the appeal of safe-haven assets.