The Federal Reserve's independence just became front-page news. Three former chairs of the Fed spoke up against a Department of Justice investigation targeting current Fed Chair Jerome Powell, warning that such scrutiny could seriously damage the institution's autonomy.

Why does this matter? The Fed's ability to operate independently from political pressure is foundational to US monetary policy—and by extension, global financial markets. When politicians or prosecutors start examining central bank leadership too closely, it sends a signal that institutional independence might be weakening.

These aren't casual comments either. Former Fed chairs carry serious weight in policy circles, so their unified stance suggests genuine concern about the precedent being set. If the central bank loses credibility as an independent institution, you can expect market volatility to follow. Investors hate policy uncertainty, and crypto markets especially react sharply to changes in the macro backdrop.

The timing is worth noting too. As inflation debates continue and interest rate expectations shift, Fed credibility is already under scrutiny. This investigation adds another layer of complexity to an already tense relationship between fiscal and monetary authorities.