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The Trump administration has launched a criminal investigation into Fed Chair Jerome Powell.

The specifics of the investigation pertain to whether Powell lied under oath to congress concerning the Fed’s renovations of its Washington DC headquarters. However, it’s been clear that the President has had a personal vendetta towards Powell ever since the former took office at the start of the year.

Why?

President Trump fully believes (and there is ample evidence he is correct) that the Fed is in fact a political entity.

As I outlined in my 2024 bestseller Into the Abyss during President Trump’s first term former Fed Vice Chair Stanley Fischer noted that the Fed intentionally tightened monetary policy to hurt the President’s economic agenda. The result was the credit markets freezing and a stock market crash during the 2018 holiday season.

Once Trump was out of office, the Fed veered even more aggressively to the left with Powell promoting topics like climate change, race reparations, and more. To be clear, I am not saying those topics are bad. What I am saying is that the Fed has NO business discussing them. The Fed is supposed to focus on employment and inflation. Period.

The political games didn’t end there, either. From late 2020-late 2021, Fed Chair Powell pushed the ridiculous narrative that there was no inflation or that inflation was “transitory” for a full year despite the Fed’s own data showing he was lying. It is quite telling that he dropped this claim within a week of then-President Biden nominating him for a second term as Fed Chair.

It says a lot about Jerome Powell that he was willing to engage in this kind of careerism and political pandering at a time when inflation was eviscerating Americans’ checkbooks.

Setting politics aside, the Powell Fed believes itself to be above the law. Multiple senior Fed officials committed FELONIES during Powell’s watch (mortgage fraud, insider trading, etc.) To date, NO ONE has gone to jail. In fact, the Fed officials who engaged in insider trading weren’t even FINED for their crimes. They simply resigned and were allowed to keep the money!

More recently, Fed Chair Powell has refused to force current Fed President Lisa Cook to resign despite the evidence she committed mortgage fraud. Whether she intentionally did this or not is irrelevant. If she’s not capable to filling out mortgage documents accurately, she has no business determining economic policy for the American people.

Which brings us to today.

The Powell Fed is now in the process of getting a taste of its own medicine. Sure, the reasons for the investigation against the Fed are suspect (it is clear President Trump is enacting revenge on the Fed), but politics is a full contact sport and if you want to play political games (pushing leftist political themes, permitting felonies to go unpunished, intentionally hurting the President’s economic agenda) don’t act surprised when your opponent hits back.

How this plays out remains to be seen. But the one thing that is clear is that the President is willing to do ANYTHING and EVERYTHING to force the Fed to start aggressively easing monetary policy.

The end result of this will be a raging hot economy and another round of inflation. It is NOT coincidence that gold and silver are erupting higher while this plays out. Similarly, it is not coincidence that the $USD is about to end a 15-year bull market.

What does this mean for investors?

We have a small window of time to prepare for what’s coming. Jerome Powell’s term ends in May. Put another way, within four months the Fed will be completely under President Trump’s control.

Whether you like this or not is irrelevant. It’s coming. And the time to prepare to profit from it is NOW before it hits.

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