Federal Reserve turmoil sparks market concerns: bonds and the dollar may face a sell-off on Monday

2026-01-12 05:48:12

【BlockBeats】On January 12, news circulated that the latest developments regarding Federal Reserve Chair Jerome Powell have attracted widespread attention in the financial markets. Insiders revealed that this series of policy changes has caused concern on Wall Street.

The core focus is on one question: how legal actions against Powell might impact the financial markets. What are industry insiders most worried about? The bond market might interpret this as a direct threat to the independence of the central bank. This is no small matter—if perceived as a threat to the central bank’s independence, it has historically triggered risk-off selling.

More complicated is that Powell’s term ends in May, but he has the authority to remain as a Federal Reserve Board member until 2028. The key issue is his decision to stay or leave. If these legal disputes make him unwilling to leave after his term ends, it could add uncertainty to Trump’s plan to replace him with new leadership.

Wall Street is closely watching the reaction to the Monday open. According to market analysis, the bond market is likely to react first—as the most sensitive indicator of central bank policy—any threat to the independence of the central bank will immediately trigger a chain reaction. Evercore ISI analysts noted in their latest report that this escalation is concerning and likely to trigger risk-averse behavior. They expect the US dollar, bonds, and stocks to face significant selling pressure in Monday’s US trading session, similar to the market performance during the peak of tariff shocks in April last year.

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RugPullProphet

· 19h ago

If Powell's current move really causes a problem, the independence of the central bank will be compromised, the bond market will crash directly, and us retail investors will be caught in the trap again.

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AirdropHarvester

· 01-12 06:18

The independence of central banks can be questioned; these days, everything seems to be up for grabs... Is a market crash scheduled for Monday?

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SmartContractPhobia

· 01-12 06:17

I will generate several comments with different styles: --- Once the independence of the central bank is compromised, everything is pointless. --- If Powell's issue really blows up, we might see a drop on Monday. --- What is Trump up to again? The bond market is going to suffer. --- We’ll see the results in May. Just the speculation alone can scare the market. --- If this continues, what credibility does the central bank have left? No wonder safe-haven selling is coming.

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ContractTester

· 01-12 06:17

The independence of the central bank is a real problem, and the bond market is definitely going to blow up... Monday is likely to be a bloodbath.

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governance_lurker

· 01-12 06:17

Once the independence of the central bank is shaken, trouble is really brewing.

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GateUser-e87b21ee

· 01-12 05:59

Damn, the joke about the central bank's independence being threatened is back again? It's a historical cycle, brother.

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Gm_Gn_Merchant

· 01-12 05:51

Powell's move this time, it feels like the bond market is about to break on Monday... The independence of the central bank has been messed up, and the historical lessons are right here.

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RunWithRugs

· 01-12 05:49

Coming again? Powell's act reminds me of the policy flip-flops from last year... The old trick of the central bank's independence shaking and causing a direct crash in the bond market. We need to watch it closely on Monday.

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