2026-01-12 03:25:25

In 2026, the Federal Reserve faces an unprecedented test.

Reports indicate that Federal Reserve Chair Jerome Powell is under criminal investigation by the Department of Justice—ostensibly for building renovations, but in reality, turbulent undercurrents are at play. The true intention behind this is intriguing: is it to force the central bank to accelerate its rate cuts?

Trump has repeatedly stated: the rate cuts are too slow. Powell's response is firm: my decisions are independent. The Department of Justice continues to apply pressure, with subpoenas issued.

Time is tight, investigations are ongoing, and calls for replacing officials from the President are continuous—this power struggle over "monetary policy independence" is unfolding.

What does this mean for the crypto world? The Fed's policy tilt directly affects liquidity, and the direction of interest rates determines capital flows. Once the rate cut cycle begins, risk assets (including cryptocurrencies) often see an influx of capital. Conversely, if Powell maintains his stance of independence, the market must prepare for a prolonged high-interest-rate environment.

The outcome of this peak confrontation will reshape the entire market landscape of 2026.

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WhaleShadow

· 9h ago

Powell, this guy, has to hold on. If he really gives in, our crypto circle will have to endure a long cold spell. The subpoena move is indeed ruthless, but interest rate cuts need to be scientific; we can't just listen to Trump's reckless commands. Let's wait and see. If independence is lost, the market will be worse than anything. This script is so outrageous, it feels more exciting than the crypto world. If Powell is really replaced, there will definitely be a story in liquidity; we need to keep a close eye on it.

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NFTArchaeologis

· 11h ago

The independence of monetary policy is, in a sense, like the transfer of imperial seal authority in ancient times; once loosened, it is difficult to restore. Powell's stance reflects a broader game within the entire institutional framework.

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AirdropFreedom

· 12h ago

Can Powell withstand the pressure? Honestly, I'm a bit skeptical... As soon as the rate cut starts, the crypto world gets excited. Everyone sees through this. The Department of Justice's move was brilliant—renovation? Who would believe that? Feels like 2026 will be very magical. But if they really cut rates, then we have a chance. This power game is played too ruthlessly. Can the central bank remain independent?

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