A federal grand jury has issued a subpoena to Federal Reserve Chair Jerome Powell. Republican Congressman French Hill disclosed that the Department of Justice is investigating Powell's Congressional testimony last June regarding the costs of renovating the Federal Reserve headquarters, accusing him of perjury. This move could lead to Powell's absence from the statutory semiannual congressional hearings scheduled for February.

If the indictment is successful, the history of the Federal Reserve will face a rare crisis— the current chair missing a congressional hearing due to a criminal investigation, federal policy signals being interrupted, and the market's basis for pricing future monetary policy disappearing instantly.

The political situation in Washington is rapidly heating up. Republican Senator Tom Tillis stated that until the investigation is resolved, all new nominations for the Federal Reserve will be blocked. Several members of both parties have also expressed "serious concerns" about the Department of Justice's actions, and political tensions on Capitol Hill are sharply rising.

What are traders most worried about? If Powell truly misses the meeting, the key policy "traffic light" in February will go out. The market will fall into a pricing dilemma during the policy vacuum period, unable to obtain official clear guidance, with volatility and uncertainty soaring. Historical experience shows that when central bank leaders are involved in legal disputes, it is often the most chaotic moment for the markets.

The Federal Reserve has not made any public response at this time. The storm in Washington is brewing, and Wall Street has already felt the pressure. Every subsequent development could become a trigger for market volatility.