2026-01-21 19:20:40

The internal cracks within the Federal Reserve are deepening. Powell is facing a scandal involving a criminal investigation, with Democratic Congress members directly demanding full disclosure of all documents, clearly applying pressure. Even more surprisingly, the Treasury Secretary, disregarding collegiality, publicly criticized Powell for interfering with judicial procedures and the losses caused by pandemic-related bond purchases, even throwing out a harsh remark: "If this were Wall Street, the CEO would have already packed up and left." The defense line of central bank independence seems to be loosening.

The market immediately exploded. If Powell himself is in trouble, who will steer the Federal Reserve? The direction of monetary policy is now in limbo. The new chairperson is expected to be announced soon, with three "dovish" candidates competing: Hasset, who is backed by Trump but whose independence is questionable; Waller, who lacks continuity; and Waugh, who is temporarily leading. But there is a harsh truth— even if a new chair takes office, interest rate policy is not something one person can decide alone.

FOMC insiders are already scarce, and inflation remains stubbornly high at 2.6%. Want to cut rates? Resistance has piled up into a mountain. The U.S. Supreme Court is also set to review related cases, and international central banks have collectively expressed support for the Fed’s independent operation. Trump’s attempt to directly control interest rates through administrative power? Reality and the system are not that simple.

This power struggle is reshaping market expectations. The independence of the central bank is under attack, and uncertainty is rising accordingly. In this context, how will capital flows adjust? Will they accelerate into cryptocurrencies and other alternative assets for hedging, or fall into panic-driven risk aversion? Can the narrative of rate cuts be reversed? These questions are worth close observation.

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DeadTrades_Walking

· 6h ago

The Fed internal conflict, to put it simply, is the self-destruction of traditional finance. This move directly accelerates our entry into crypto. If the independence of the central bank can be loosened, what institutional safeguards can be trusted? The window to buy Bitcoin has opened. Powell's situation looks satisfying, but the real winners are the holders. The more chaotic the Federal Reserve, the more unstable the exchange rate, and asset allocation will inevitably flow on-chain. Cutting or not cutting interest rates is all a joke. Instead of waiting for the Fed's internal fight to end, it's better to jump on Ethereum. Anyway, inflation will be printed out in the end. This wave of power vacuum will directly push institutional funds into the chain circle. When national central banks fight for power and profit, it's our opportunity to get rich.

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Blockblind

· 6h ago

The Fed has really messed up this time. Without central bank independence, what’s the point of monetary policy? Powell’s recent moves seem like he’s about to be sidelined... With interest rate cuts still far off, I actually have more confidence in the long-term value of BTC and Ethereum. The Treasury Secretary’s words are indeed harsh, but honestly, the Fed’s "independence" was always a facade. Inflation is stuck at 2.6% and won’t move, and the US really can’t rapidly cut interest rates due to structural issues. As power struggles intensify and uncertainty skyrockets, could this actually present opportunities for the crypto market? Speaking of which, could Trump’s entire set of actions indirectly boost demand for safe-haven assets... This game is more complicated than it seems. The new chairperson’s appointment won’t change the internal conflicts within the FOMC. The Fed now feels like a company in internal turmoil, with no one able to command anyone else. The market can only find its own way out. Once central bank independence loosens, the biggest beneficiaries are actually decentralized things—kind of ironic.

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JustAnotherWallet

· 6h ago

Federal Reserve infighting, crypto is the real winner --- Central bank independence can't even be maintained, now stablecoins are truly unreliable --- Is Powell being sidelined? Then who will control inflation... --- Wait, does this mean interest rate cuts are out of the question? My short positions... --- During a power vacuum, funds flow into the crypto market, I've seen this script before --- Dovish FOMC scarcity + sticky inflation, sounds like interest rates will stay high for a long time --- The Supreme Court is getting involved, this is even more exciting than a soap opera --- Hedge assets are shifting dramatically, have you deployed BTC yet? --- That remark from the Treasury Secretary, Wall Street CEOs should really reflect on it --- Is 2.6% inflation still high? Then I need to keep dollar-cost averaging into stablecoins --- Rising uncertainty is actually an opportunity for crypto, volatility = profit

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OnchainUndercover

· 6h ago

The Fed's internal struggle is really outrageous. Powell is in big trouble now. The independence of the central bank is almost gone. Our crypto opportunity has arrived. Lowering interest rates is a distant dream; funds need to flow into alternative assets. This situation is more dramatic than a soap opera. Let's wait and see who takes over. Inflation is stuck at 2.6%. Want to cut rates? Dream on. Political interference in the central bank. The US system is also on the verge of collapse. Funds are flowing chaotically. Cryptocurrency is now the best hedging tool. If Powell really steps down, it will be even more chaotic. The crypto world should celebrate.

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ChainSpy

· 6h ago

The Fed infighting, crypto is the real safe haven --- Powell's situation is a bit risky; interest rate policies still depend on how the FOMC plays the game --- The independence of the central bank is collapsing, and you still want to manipulate the market? That's why you should hold your coins, brother --- Cutting interest rates isn't that easy; don't be fooled by false expectations --- Funds need to move out, crypto must catch it --- Feels like the Federal Reserve is turning into a power game; this scene is more outrageous than a TV drama --- No matter who becomes the chairman, interest rates are not that easy to control; inflation is still there --- Is the crypto market about to take off, everyone? Uncertainty is here --- No matter how many institutional design restrictions there are, Trump still wants to test the waters, haha --- International central banks are all taking sides; how long can the Fed's independence last?

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EthSandwichHero

· 6h ago

The Fed's script is too outrageous; the independence of the central bank is almost torn apart. --- If Powell really messes up, who will dare to make decisions afterward? Inflation stubbornly stuck at 2.6%, rate cuts? Don't even think about it. --- Oh my, this is the time when crypto shows its strength. Funds will definitely flow into alternative assets, with mainstream finance causing such a fuss. --- The three dovish rate cutters are fighting each other, but in the end, it's the institutional level that stalls everything. It's not that simple. --- The Treasury Secretary's move was fierce; Wall Street CEOs' joke was spot on, haha. --- Uncertainty is off the charts. I think Bitcoin is about to have some fun this time. --- The FOMC's dovish members are out of stock; high inflation is suppressing the market. Talking about rate cuts is like joking. --- Power struggles are reshaping expectations. It's time to proactively position in alternative assets. --- Trump wants to directly control interest rates? Administrative measures can't handle this; the institutional barriers are in place. --- In such an environment of uncertainty, who still dares to focus only on the dollar? The safe-haven attribute of crypto assets is becoming more prominent.

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