The investigation turmoil facing the Federal Reserve is impacting confidence in the financial markets. Treasury Secretary Yellen recently told Trump that the investigation process against Federal Reserve Chair Powell is chaotic, and this policy-level uncertainty could cause substantial harm to the market.

It is worth noting that this investigation completely bypassed the coordination mechanism between the Treasury Department and the White House, an unprecedented move, which has forced Powell to publicly clarify his actions. When the Fed Chair becomes embroiled in public controversy, the stability expectations of the entire financial ecosystem are shattered — this has an especially noticeable impact on the volatility of the crypto market. The more noise at the policy level, the harder it is to predict market risks.