The Hidden Battle of Interest Rate Policies: The Confrontation Between the Federal Reserve and Political Pressure

On January 11th, a rare public confrontation surfaced. Federal Reserve Chair Jerome Powell issued a video statement, directly stating that the Department of Justice was using criminal charges as leverage in an attempt to forcibly implement Trump's low-interest-rate agenda. This is not only a clash of power but also reflects deep-seated contradictions within the current U.S. economic landscape.

On the surface, it appears to be a political mudslinging match, but fundamentally, it is a struggle over the independence of the Federal Reserve and its policy implementation space. Trump has consistently advocated for lowering interest rates, believing it benefits economic growth and employment. Powell, on the other hand, insists on basing decisions on inflation data and economic fundamentals, refusing to be manipulated by political pressure. This divergence directly impacts global capital market expectations—any adjustment to interest rate policies can disrupt liquidity environments and risk appetite in digital assets.

For cryptocurrency market participants, the direction of this struggle is crucial. Maintaining the Federal Reserve's policy independence means decisions are based on economic data rather than political considerations, providing the market with a relatively clear expectation framework. Once policies become politicized, market certainty diminishes significantly, and volatility is likely to increase.