Bitcoin’s price rose 2% on Sunday after Federal Reserve Chair Jerome Powell vowed to hold firm against a new attack from US President Donald Trump. The pledge highlights the ongoing tension between market expectations for policy and political pressure on the central bank. Trump’s latest salvo was followed by the Justice Department serving the Fed with grand jury subpoenas and threatening a criminal indictment. That move intensifies the feud between the White House and the Federal Reserve, as market participants weigh the implications for monetary policy and financial stability.
“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” he added. When chair Powell addresses the public directly on a Sunday afternoon, it is either a financial crisis or something equally important, said Peter Tillmann, economics professor at Justus-Liebig University Giessen.
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