The public confrontation between the Federal Reserve Chair and the President has escalated—Powell bluntly states: "My job will not change due to political pressure, and our decisions are entirely based on economic data." This has gone beyond the scope of routine policy debates.

The situation is clear: Trump is pushing for more aggressive rate cuts, hinting at personnel changes if the Fed does not cooperate. Powell, on the other hand, is firmly defending the independence of the central bank, stating that policy directions are solely based on economic fundamentals. Although the President has the power to nominate, it still requires Senate approval. This confrontation touches on the deeper logic of checks and balances in U.S. power.

The impact on the market can be viewed in two scenarios: one where Powell withstands the pressure, and the Fed continues to cautiously cut rates, requiring traders to repeatedly adjust expectations. The other is that the independence of the central bank is weakened, which may stimulate risk assets in the short term, but long-term will damage the credibility foundation of the dollar.

For the crypto market, this macro-level uncertainty may dampen short-term sentiment, but from another perspective, it reinforces the narrative of Bitcoin as a "non-sovereign asset"—when the rules of traditional financial systems are being rewritten, the appeal of decentralized assets becomes increasingly evident.

The current question is: can Powell maintain independence? Or will this time truly change the game rules of the Federal Reserve? Would love to hear your thoughts 👇