U.S. Attorney Jeanine Pirro responds to judge blocking subpoenas against Fed Chair Powell

"Jerome Powell today is now bathed in immunity preventing my office from investigating the Federal Reserve... It was regarding the atrocious cost overrun of more than $1 billion." The U.S. government actively attempting to criminally investigate the head of its own central bank is an unprecedented institutional crisis. When the independence, credibility, and legal standing of the Federal Reserve are under direct assault by the Executive branch, global confidence in U.S. monetary policy and the fiat dollar naturally erodes. Capital will seek non-sovereign, decentralized stores of value that cannot be manipulated or targeted by domestic political disputes. LONG GLD and BTC as safe-haven hedges against U.S. institutional instability and the politicization of the Federal Reserve. The judicial system permanently quashes the investigation, the political theater subsides without impacting monetary policy, and traditional risk-on assets outperform alternative stores of value.

"Claiming victim status, Powell proceeds to call his political friends in DC and around the world to jin up support for himself... local district court judge James Boseberg, whose written decision on its face makes clear his antipathy toward President Trump and this administration." The market relies on the Federal Reserve for stability and predictable forward guidance. A sitting Fed Chair embroiled in a bitter, highly publicized legal and political war with the administration introduces massive tail risk. Markets abhor uncertainty, and the prospect of the Fed Chair facing ongoing threats of criminal indictment will likely trigger sudden spikes in equity market volatility as institutional investors price in leadership instability. LONG VXX to capture the rising uncertainty premium and potential market shocks stemming from this ongoing legal clash. Markets completely ignore the political drama, focusing strictly on underlying macroeconomic data and corporate earnings, leading to a continued volatility crush.