The financial world has been buzzing these days. Three former Federal Reserve Chairs, Yellen, Bernanke, and Greenspan, jointly issued a statement on January 12, 2026, defending current Chair Powell, who is under criminal investigation. Their tone was quite stern, outright calling this an "unprecedented" attack on the independence of the Federal Reserve.

Let's first discuss why this matter is so significant. A criminal investigation into a Federal Reserve Chair is almost unheard of in U.S. history. According to legal regulations, the Fed Chair has a super-long term of 14 years and cannot be dismissed without specific reasons. This design is meant to keep monetary policy insulated from political interference. In other words, once someone initiates a criminal investigation against the sitting Chair, regardless of the final outcome, the process itself becomes a powerful tool for political pressure.

The statements from the three former Chairs highlight two core points: First, they characterize this incident as a "prosecutorial attack," claiming it is unprecedented in Fed history; second, they compare it to emerging market countries, saying such behavior is common in countries with weak institutions and can lead to inflation and economic chaos, and therefore should not happen in the United States.

What does this mean for the markets? The immediate concern is that the independence of U.S. monetary policy might be compromised. If the market begins to doubt whether Fed policies could be influenced by political factors, the overall economic and financial market uncertainty will spike. This uncertainty often increases volatility in risk assets, and as a risk asset, the crypto market is naturally susceptible to shocks. Moreover, if political interference truly affects the Fed's decision-making logic, it could trigger chain reactions in the dollar's trend, interest rate policies, and even global liquidity.