Federal Reserve Chair Powell faces unprecedented pressure. This Friday, the U.S. Department of Justice submitted a grand jury subpoena to the Fed, threatening criminal charges—ostensibly related to a June last year congressional testimony involving the headquarters renovation project. But Powell bluntly states: this is simply an excuse.

What is the real issue? Trump.

Since regaining the White House in January last year, Trump has publicly pressured the Federal Reserve to cut interest rates significantly multiple times. His logic is straightforward—lower interest rates can stimulate the economy and reduce government debt financing costs. But Powell has not bought into it. As a result, Trump has repeatedly demanded his resignation and even hinted at announcing a successor in January 2026. Powell’s term expires this May.

"The true reason behind the threat of criminal charges," Powell directly points out in a statement, "is that the Federal Reserve sets interest rate policies based on economic evidence and public interest, not blindly following the president’s personal preferences."

This hits at the core issue: the political independence of the Federal Reserve is being eroded. Financial policy should follow economic laws, not political cycles. If the Fed succumbs to political pressure and arbitrarily adjusts interest rates, the stability of the entire financial system could be shaken. For the crypto market, the Fed’s policy direction directly impacts liquidity levels and risk appetite—this is no small matter.

"Standing firm in the face of threats," Powell concludes, "is sometimes the responsibility of public officials."

This war over who should decide interest rates has escalated from rhetoric to legal threats. The test of the Federal Reserve’s independence has only just begun.