News about Chair Powell has come out again. The Washington D.C. federal prosecutor has recently announced that they will temporarily suspend the construction cost investigation related to Chair Powell’s speech.

According to the announcement by Prosecutor Robert Firo, it has been decided not to proceed with the investigation into Chair Powell any further. Instead, they have asked the Federal Reserve Inspector General to review the Federal Reserve’s overall spending details.

However, Firo made it clear that if it becomes necessary in the future, the investigation related to Chair Powell’s speech can be restarted at any time. In other words, for now, it is on hold.

What’s interesting in the market is that after this news, the federal funds rate swap prices reacted. It seems to once again show just how much Chair Powell’s policy direction impacts the market. It is being interpreted as a sign that expectations for interest rate cuts throughout the year are increasing.

It also looks like how Chair Powell’s handling of inflation management and the interest rate policy direction will be determined will be a key variable this year.