The Trump administration has intensified its confrontation with the Federal Reserve, now threatening legal action against Chair Powell over his congressional testimony regarding a federal building renovation initiative. This political escalation adds another layer of uncertainty to monetary policy outlook—precisely what traders watch closely. When central bank leadership faces institutional pressure, it often translates into volatility across risk assets, including crypto markets. Powell's independence and credibility matter enormously for rate expectations and broader financial stability narratives. Whether this political theater impacts actual policy decisions remains to be seen, but the optics alone fuel speculation about the Fed's future direction.