The declared war between Donald Trump and the Federal Reserve reached its peak this Sunday.

The Department of Justice (DOJ) sent subpoenas to the Fed and is criminally investigating its chairman, Jerome Powell.

2️⃣ The Official Accusation

Led by prosecutor Jeanine Pirro (a Trump ally), the investigation is looking into whether Powell lied to Congress last June.

The alleged reason? The costs of renovating the Fed headquarters. Trump says it will cost $4.1 billion.

Powell and the Fed maintain it's $2.5 billion and is within the budget.

But nobody in the market believes it's solely because of a renovation.

3️⃣ The Real Reason: The Interest Rate War

Analysts and Powell himself point out that the investigation is an explicit political retaliation.

For months, Trump has demanded aggressive interest rate cuts to stimulate the economy. Powell has refused to comply, maintaining a technical stance of waiting for economic data.

Trump has lost patience.

4️⃣ Powell's Response

Breaking all Fed protocol of silence, Powell issued an explosive statement linking his potential arrest to his refusal to yield to Trump:

"The threat of criminal charges is a consequence of the Fed setting rates based on our best assessment of what will serve the public, rather than following the President's preferences."

5️⃣ The Coordinated Attack

This is not an isolated case. The Trump administration has already tried to remove the Fed governor, Lisa Cook, under allegations of fraud.

The move is interpreted on Wall Street as a broad effort to decapitate the current leadership of the Central Bank and install figures loyal to the executive branch.

6️⃣ Market Reaction: Flight to Safe Haven

The market seeks safe-haven assets and punishes American risk:

• Safe Haven Assets on the Rise: Gold (+1.75%) and Silver (+4.17%) surge. Bitcoin (+0.87%) and Solana (+4.05%) also rise.
• Weakened Dollar: The Dollar Index (DXY) falls to 98.700 (-0.19%), signaling a loss of confidence in the currency.
• US Stock Markets in the Red: S&P 500 futures (-0.45%) and Nasdaq (-0.68%).