The conflict between Federal Reserve Chair Powell and former President Trump has been fully exposed. On one side are the President's pressure to cut interest rates and calls for "personnel changes," while on the other side, Powell remains firm—explicitly stating he will not resign early and is committed to maintaining the independence of the Federal Reserve. Essentially, this power struggle is about who will control U.S. monetary policy.

Trump has frequently criticized Powell publicly, complaining that the central bank's rate cuts are too slow, and even threatening to replace him to align the Fed's policies with his economic agenda. Powell's term runs until May 2026, but Trump has indicated he might nominate a new Fed chair as early as next year.

Now, the market is focused on who will succeed. The leading candidates include White House National Economic Council Director Kevin Hasset and former Fed Governor Kevin Warsh. Regardless of who takes the helm, a common expectation is that—the relationship between the Fed and the government may become closer, which could also mean changes in the central bank's decision-making space.

Interestingly, the Fed has adopted a "strategic concession" approach internally. They have made compromises on some non-core issues (such as personnel arrangements) to focus their "political firewall" on the most critical monetary policy decisions. However, disagreements within the Fed about economic outlooks and interest rate paths are also beginning to surface.

How will this power game between the White House and the central bank ultimately affect U.S. interest rate trends? What impact will it have on the global economy? Can the Fed maintain its independence under political pressure? These questions are directly related to the future direction of the crypto market and are worth ongoing observation.