Silver Rises Over 120% YTD 
Last week, news broke that few investors expected to see: the Department of Justice has opened a criminal investigation into Federal Reserve Chair Jerome Powell.
Officially, the probe focuses on whether Powell gave false or misleading testimony to Congress last June regarding the cost of a Federal Reserve building renovation. Unofficially, markets immediately understood something deeper was going on — and precious metals responded fast.
Gold and silver don’t move on paperwork disputes. They move on credibility, confidence, and pressure inside the system. And right now, all three are cracking.
The Official Story vs. the Real One
According to the DOJ, the issue centers on a renovation project originally estimated at $1.9 billion, later revised to roughly $2.5 billion — a $600 million increase. That discrepancy is now being framed as potential false testimony.
Let’s be clear: budget overruns are routine in Washington. Launching a criminal investigation over one — especially against the sitting Fed Chair — is extraordinary.
Powell himself didn’t mince words. He made it clear this isn’t really about a building. It’s about interest rates.
This investigation is best understood not as accountability, but as pressure — a warning shot aimed at the Federal Reserve during a moment when the government desperately needs relief.
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Why Interest Rates Are the Real Battleground
To understand the stakes, you have to look at the government’s balance sheet.
Over the next 12 months, roughly 25% of U.S. federal debt is set to mature and must be refinanced. For years, that rollover happened at near‑zero interest rates, keeping interest costs manageable.
That era is over.
With rates hovering near 4%, refinancing today would dramatically increase interest payments. Net interest expense is already the second‑largest line item in the federal budget. If rates stay elevated, interest costs threaten to crowd out everything else the government spends on.
Put simply: the government cannot afford high rates.
That’s why Powell’s comment matters so much. The threat of legal action isn’t about past testimony — it’s about forcing the Fed’s hand on future policy.
Why This Is Rocket Fuel for Gold and Silver
From a precious metals perspective, this setup is powerful either way.
If rates stay high, the government’s fiscal position continues to deteriorate — undermining confidence in the dollar and the broader system. That’s already bullish for gold and silver.
If rates are cut under political pressure, the outcome may be even more explosive. Rate cuts in a high‑inflation environment push real interest rates deeper into negative territory — a condition that has historically aligned with major precious metals bull markets.
Negative real rates reduce the opportunity cost of holding gold and silver and highlight the risks of paper assets. That’s why metals tend to respond before policy officially changes.
Markets don’t wait for press conferences. They move when the incentives become obvious.
The Bigger Lesson Governments Still Haven’t Learned
There’s a deeper issue beneath this entire episode: governments continue trying to solve a debt problem with more debt.
Artificially low rates helped create today’s debt burden. Using artificially low rates again to manage that burden doesn’t fix the problem — it compounds it.
At some point, debt must be reduced, not refinanced forever. Until that lesson is learned, precious metals will remain one of the few assets outside the system — with no counterparty risk and no political strings attached.
That’s why gold and silver keep doing what they’ve always done when pressure builds: they quietly signal trouble ahead.
Watch the Full Video
This article only scratches the surface. In the full video, Alan walks through the implications step‑by‑step — including what likely happens to Powell, how this investigation plays out, and why metals are reacting now.
👉 Watch the full video here and see what the market is already telling us.
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People Also Ask
Why is the DOJ investigating Federal Reserve Chair Jerome Powell?
The DOJ is examining whether Jerome Powell gave false or misleading testimony to Congress about the cost of a Federal Reserve building renovation. While the official issue is a budget discrepancy, many analysts believe the investigation is really about pressuring the Fed over interest rate policy. Alan explains the deeper implications in the full GoldSilver video.
Is the investigation into Jerome Powell really about interest rates?
Yes. The timing strongly suggests the investigation is less about renovation costs and more about forcing the Fed to lower rates. With massive U.S. debt refinancing ahead, political pressure on monetary policy has intensified — a key reason markets and precious metals are reacting now.
Why are gold and silver rising on the Powell investigation news?
Gold and silver tend to rise when confidence in central banks and government finances weakens. The Powell investigation signals political interference and future rate cuts, both of which push real interest rates lower — historically a bullish environment for precious metals. GoldSilver covers this dynamic in detail in the video.
How does U.S. debt refinancing affect gold prices?
About 25% of U.S. federal debt must be refinanced within the next year, and higher interest rates make that increasingly unaffordable. If rates stay high, fiscal stress grows; if rates are cut, real rates turn more negative. Both scenarios have historically supported higher gold and silver prices.
What does this mean for gold and silver investors right now?
The Powell investigation highlights a broader issue: governments attempting to solve debt problems with more debt and lower rates. As long as this cycle continues, gold and silver remain attractive as assets outside the financial system. Investors can learn more by watching the full video and exploring education resources at GoldSilver.com.
