US Attorney Pirro Says Powell Is Not Above the Law

"Jerome Powell today is now bathed in immunity, preventing my office from investigating the Federal Reserve." The US executive branch is actively attempting to criminally investigate the Federal Reserve, representing a severe breach of historical central bank independence. When a nation's central bank faces extreme political pressure or institutional instability, domestic and foreign capital typically flees the sovereign fiat currency in favor of non-sovereign, hard assets. LONG GLD and BTC to capture the safe-haven premium generated by fears of US institutional decay and potential politicization of the money supply. The legal dispute is quickly dismissed by higher courts, the Fed's independence is strongly reaffirmed, and the safe-haven premium collapses.

"Powell proceeded to call his political friends in DC and around the world to gin up support for himself." A public, legal war between the US Justice Department and the Federal Reserve creates extreme systemic uncertainty. The global financial system relies heavily on the stability and predictability of the Fed. A constitutional or legal crisis involving the Fed Chair will force institutions to de-risk, spiking equity risk premiums as markets price in the unprecedented chaos. LONG VIXY to hedge against the inevitable spike in broader market volatility stemming from this institutional conflict. Markets dismiss the investigation as mere political theater, focusing instead on underlying macroeconomic data and corporate earnings, which would cause long-volatility positions to suffer from decay.