$BTC $ETH The Federal Reserve Independence Crisis: The Power Struggle Between the Central Bank and the White House

This week, a dramatic scene unfolded in Washington. Federal Reserve Chair Jerome Powell suddenly made a bold statement, accusing the Department of Justice's criminal investigation subpoena of being "a political tool," directly pointing to retaliation after the White House's pressure to cut interest rates was rejected.

The background is as follows: Trump repeatedly publicly demanded Powell to significantly cut interest rates, even threatening to remove him from office. Powell's response was firm—"Our decisions are based on economic data, not personal preferences." The exchange escalated from verbal sparring to the judicial level.

This is not just a fight over interest rate cuts but a deeper reflection of the survival issue of the U.S. central bank's independence. If the president can exert pressure on the Fed through judicial means, the entire monetary policy formulation mechanism could be distorted. Powell stated in a release, "Standing firm in the face of threats is sometimes the very purpose of public service."

What does this mean for the crypto market? The direction of Fed policy directly impacts liquidity and influences investors' risk asset preferences. When the independence of the central bank is questioned, market pricing mechanisms can become chaotic.