2026-01-13 16:25:29

Recently, the Federal Reserve has been causing quite a stir. Powell is under investigation by the Department of Justice over the headquarters renovation, which originally was an administrative issue but has now escalated into a political storm. The situation has grown even larger, with multiple central bank governors worldwide, coordinated by the Bank for International Settlements, drafting a joint statement to "take sides" in support of Powell and the Fed's independence, explicitly opposing political interference. What does this indicate? The international financial community all feels that this matter has been politicized.

The reaction in the financial markets has been extremely intense:

The US dollar and US stocks are not doing well— the dollar index has been declining steadily, and US stock futures are also trending downward. Gold prices are particularly strong, with spot prices soaring to a historic high of $4,601.38 per ounce. Major investment banks have also changed their tone; JPMorgan said interest rate cuts might not happen until 2026, while Barclays and other institutions have pushed back their expectations for rate cuts.

The contradictions are clear: Powell claims this is an excuse to subtly weaken the Fed’s independence; although the Trump administration denies this publicly, the general consensus is that there are forces trying to pressure the Fed into cutting rates; internally, the Fed remains firm, with New York Fed President Williams and others insisting there are no short-term reasons to cut rates, and their policy stance remains unchanged.

What about the crypto asset market? In the short term, this wave of risk aversion may attract funds into gold, possibly diverting some from the crypto market. But in the longer term, the damage to the Fed’s credibility and the questioning of the US dollar’s status could actually strengthen Bitcoin’s appeal as a decentralized store of value—after all, it’s unaffected by politics. Market volatility is expected to rise significantly, presenting both challenges and opportunities for traders.

BTC4,29%

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MEVHunterNoLoss

· 7h ago

This is a typical example of political pressure. The Fed folks are also starting to take sides. Gold hitting a new all-time high indicates that everyone is looking for safe-haven assets. The crypto market might really be diverted this time. With interest rate cuts still far off and the dollar's credit still declining, this long-term positive outlook for Bitcoin is evident. Decentralization is the way to go. As volatility increases, this is the time for us to buy the dip. Central banks are siding with Powell, which shows they are also afraid of playing with fire politically. The Fed's independence being compromised indicates problems within the entire system. Politics are politics, money is money. This wave of market movements is just hedging. Gold taking off while the crypto market is cold is normal. Once the sentiment passes, a rebound is expected. Is Trump trying to influence the Fed again? It’s always the same—cutting rates, but Powell just doesn’t buy it. This kind of confrontation is itself eroding the dollar’s credibility. The Fed standing firm is a good thing, showing that some people still hold to principles. But the problem is that the market is already starting to differentiate. Funds are flowing into gold, and we in the crypto space need to wait until the storm passes.

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ReverseTrendSister

· 7h ago

Oh no, it's the Federal Reserve again, the political flavor is getting stronger and stronger. The era of flood-like liquidity has ended, now anyone who dares to think about cutting rates will be watched closely, I’m not surprised by the surge in gold. Bitcoin, in times like these, is even more attractive, after all, it doesn’t play these power games, that’s true value. In the short term, it may divert funds, but in the long run, with the dollar’s credit being manipulated like this, you have to consider some non-sovereign assets. --- The controversy over the Federal Reserve’s independence shows that someone indeed wants to control monetary policy, it’s uncomfortable. Financial elites have come out against political interference, you know this has already crossed the bottom line. Gold has hit a historic high, funds are looking for an exit, crypto might be quiet in the short term, but don’t worry. --- So Powell can’t be tough? The market is watching, once there’s a compromise, the dollar will be finished. Bitcoin is lying in wait, you play political struggles, I quietly appreciate value, what a gap haha. --- JPMorgan pushes back rate cuts, investment banks have changed their tune, it shows they see everything. If the dollar continues like this, won’t you have to allocate some non-standard assets? --- Safe-haven sentiment is flowing into gold, but smart people have known the end point for a long time.

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AirdropDreamer

· 8h ago

The Federal Reserve's latest political stunt has directly sent gold soaring to $4,600, while the crypto world is still waiting? This is true decentralized value—no need to look at anyone's face. Short-term gold bloodsucking is a thing, but in the long run, once the dollar's credibility is damaged, the story of BTC is just beginning. Volatility is off the charts; isn't it foolish not to buy the dip in this market? Is Powell being investigated just to renovate a building? Uh... is this serious? The Fed is tough, but the market simply doesn't buy it; funds are fleeing to safe havens. The central banks uniting to protect independence only shows how serious the problem is... Political storms are like this—today they pretend, tomorrow they might surrender. Can't cut interest rates by 2026? Then the dollar's days are truly tough; I bet BTC will be even more attractive. Major investment banks are pushing back the rate cuts; isn't this hinting at who’s calling the shots? Haha. Gold prices hit a new record high; people are already voting with their money. Political interference is just a joke.

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