Look at the margin call chart I posted! The "power struggle" between Trump and the Federal Reserve is escalating, and global financial markets are closely watching the court ruling. The cryptocurrency circle may face a chain reaction of volatility!

Recently, the U.S. Supreme Court issued a rare warning regarding the Trump administration's attempt to remove the Federal Reserve's first Black female director, Lisa Cook. This intense battle over central bank independence is causing heightened tension on Wall Street, in the crypto markets, and across the global financial system. In the Fed's century-long history, such direct political interference is extremely rare, and the final ruling could not only influence the direction of U.S. interest rate policies but also serve as a new trigger for crypto market fluctuations.

Power Boundary Dispute: The Showdown Between the White House and the Federal Reserve

The Trump administration sought to remove Lisa Cook from her Federal Reserve director position on charges of allegedly misreporting real estate information before taking office. This move was quickly met with collective skepticism from Supreme Court justices. Justice Kavanaugh explicitly stated during the hearing that allowing such removals would "seriously weaken or even dismantle" the Fed's protective mechanism against political interference. Chief Justice Roberts also expressed clear doubts about the government's stance.

The core principle behind the design of the Federal Reserve director positions is to insulate monetary policy from short-term political pressures, ensuring decisions are based on long-term economic goals rather than political cycles. This lawsuit is not only about the fate of one director but also a fundamental challenge to the independence of the U.S. central banking system. Lisa Cook firmly denies the allegations, calling them misreadings of documents and misstatements, and notes that no criminal charges have been filed to date.

Behind the Curtain of Interest Rate Policy

Beneath this power struggle lies a deeper battle over interest rate policy. The Department of Justice recently launched a rare criminal investigation into Fed Chair Jerome Powell. Powell publicly countered, calling the investigation an "excuse," and stated that it essentially stems from the Trump administration's dissatisfaction with the current interest rate policy direction. Powell also personally appeared in court to support Lisa Cook, demonstrating the seriousness with which the Fed leadership views this matter.

Analysts warn that if the Trump administration succeeds in removing Cook, it could set a dangerous precedent for future interference in monetary policy. Currently, the U.S. faces a dilemma of high inflation and slowing economic growth, and even minor adjustments to interest rates can trigger chain reactions in global markets. If the Fed's independence is compromised, it could undermine the dollar's credibility and destabilize the global monetary system.

Sensitive Reactions in the Cryptocurrency Market

This power struggle is particularly noteworthy for its potential impact on the crypto market. Historical data shows a significant correlation between Fed policy uncertainty and crypto price volatility. Any shifts in dollar policy could drive funds toward crypto assets as a hedge or speculative opportunity.

Specifically, if the Fed's independence is undermined, market confidence in the traditional financial system may decline, prompting some investors to turn to decentralized cryptocurrencies as alternatives. Additionally, uncertainty around interest rate policies can affect liquidity in the crypto markets, increasing the risk of price swings. Recently, niche assets like Elon Musk-related tokens and others have also shown abnormal volatility due to overall market sentiment shifts.

This direct confrontation between the President and the Supreme Court is not only a test of the U.S. central banking system but could also become a key point in reshaping the global financial landscape. Whether the Fed's "independent firewall" can hold will directly influence the dollar's status, global capital flows, and the future direction of the crypto market. Investors worldwide are closely watching the final court ruling and preparing for potential market turbulence. #黄金白银再创新高 #特朗普取消对欧关税威胁 $BTC