2026-01-13 00:24:14

At the beginning of 2026, the battle for the Federal Reserve Chairmanship is heating up. Trump, dissatisfied that his demand for rate cuts has not been fully met, decided to intervene, instructing an investigation into Fed Chair Powell, with Treasury Secretary Bessent quickly mediating. Behind this game is a fundamental challenge to the independence of the central bank.

The reality is that in Q4 2025, the Fed only implemented three rate cuts, each of 25 basis points, far below Trump's expectations. Frustrated, federal prosecutors launched an investigation into Powell on charges such as overspending on renovations, while Powell openly called it "political coercion." Trump had already planned personnel changes after Powell’s term ended in May 2026; his previous attempt to dismiss Board Member Lisa Cook was unsuccessful. Now, with only two weeks left for the Supreme Court debate, the situation has become more complicated—Powell’s term has been extended to 2028, and the dispersed power further intensifies this contest.

Bessent previously told Trump that this investigation could trigger market turmoil. The plan was to let Powell step down after nominating a new chair, but contrary to expectations, it strengthened Powell’s position. The leading candidates for the new chair are Kevin Waugh (41% support in polls) and Kevin Hasset (39%), whose policy orientations will directly influence future monetary policy directions.

Congress’s attitude is also divided. Senators condemn this political interference, while House Republicans choose to tacitly allow the investigation to proceed. Former Fed Chair Yellen and others issued a joint statement warning that turning monetary policy into a political tool could lead to runaway inflation and economic recession.

Market reactions have been relatively calm, but signals are already evident—gold hit a record high, the dollar weakened, and US stocks opened lower but recovered later. Regarding the pace of future rate cuts, institutional opinions vary: Citibank expects cuts of 25 basis points in March, July, and September; Goldman Sachs and Morgan Stanley believe the first cut will be delayed until June; JPMorgan is the most conservative, believing rate cuts will be difficult to achieve throughout the year. This power struggle over the Federal Reserve will have a profound impact on global financial markets, and cryptocurrency investors should closely monitor related developments.

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pvt_key_collector

· 01-14 18:32

Gold hits new highs, dollar depreciation is a clear signal, political interference leads to this outcome for central banks Central bank independence is gone, crypto is the real way out, stacking coins and waiting for the next trend Powell being coerced has turned the Federal Reserve into a political tool, that's for sure Yellen and their warnings are all in vain, no one listens in the face of power Cutting interest rates again and again, how can institutional opinions be so divided? Is the market really calm? I remain skeptical Trump's move is ruthless, changing the chair in May—so what? The entire landscape has collapsed Although US stocks recovered their losses, they lack confidence; gold is telling the truth Whoever takes over from Wash and Hasset can't change the overall situation; monetary policy has long gone awry Crypto folks need to wake up, this is exactly why we need decentralization, brother

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LiquidationAlert

· 01-13 10:18

Powell is tough, this is called "political coercion," straightforwardly said, much more honest than those who beat around the bush. However, Trump's chess move is indeed fierce; the new all-time high in gold is a clear signal. --- Dare to say that the rate cut will be delayed until June... What are the institutions waiting for... Watching the show. --- The independence of the central bank is gone, and the financial market has truly become a casino. Bitcoin has long smelled the trend. --- Kevin Walsh's 41% poll feels like he's being pushed out to take the blame. --- The dollar weakening, gold reaching new highs, and the stock market forcefully recovering... This game is not that simple. --- Besant's mediation is really funny, it actually pushes Powell further to the hard line; they prefer soft over hard. --- Trump insists on deciding the pace of rate cuts himself, treating the Federal Reserve like his personal ATM. --- In two weeks, the Supreme Court will have a decision; at that time, asset allocation needs to be reconsidered. --- Inflation out of control? Recession? Yellen and others' warnings are finally coming true; retail investors can't bear it. --- With power so dispersed, no one listens to anyone. The next Federal Reserve chair will have to be much tougher.

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GateUser-3824aa38

· 01-13 00:53

The independence of the central bank is almost gone, now it's really about whose face Trump will look at to get by. Powell has been holding on for so long, which is quite impressive, but I didn't expect Bessant couldn't even keep him. There is a reason why gold hitting new highs; in this kind of political struggle, retail investors are always the ones who pay the price in the end. The delay in interest rate cuts actually has a pretty big impact on the crypto circle; it depends on how things unfold later. Neither Kevin feels like a good choice to take the stage; policy tools are being politicized, and they still want stability? Ha. This is the real power game; Yellen and their warnings are useless. It's outrageous that the US stock market recovers lost ground, indicating that institutions are not afraid of this move at all.

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HallucinationGrower

· 01-13 00:46

Powell really held his ground. If he's taken out this time, the crypto world will explode. The independence of the Federal Reserve is gone; only crypto remains a true safe haven. Trump's move has pushed gold to new highs, indicating the market is panicking. A bunch of Kevin players, it feels like no matter who takes over, the outlook of no rate cuts remains unchanged. Whether they will cut rates before the end of the year is a suspense more mind-boggling than a script.

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AirdropJunkie

· 01-13 00:44

Wow, this is the legendary "political rate hike"... Gold is soaring wildly but still pretending nothing's wrong, this market really can't hold up anymore. Powell investigated for renovation overspending? That excuse is more ridiculous than stablecoins, can't they just be straightforward? Cut interest rates by 25 basis points? How angry must Trump be to pull off something like this... The crypto world is about to change. The independence of the central bank is a joke in the face of politics; even when the Fed was so tough before, it was useless. The new all-time high in gold says it all; smart money has already fled. Can we trust this rebound in the US stock market?

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ChainChef

· 01-13 00:44

yo, fed drama seasoning this whole market recipe rn... Powell getting cooked while gold's hitting all-time highs? that's the signal we're marinating in real uncertainty fr

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TradingNightmare

· 01-13 00:38

Trump's move is playing with the independence of the central bank as if it's a joke... Powell is also quite tough, openly speaking out against political coercion, showing backbone. I'm optimistic about gold reaching a new historical high; with the dollar so weak, trouble is bound to happen sooner or later. The pace of interest rate cuts is completely messed up; Citi and Morgan are both confused, and retail investors like us can only wait to be harvested. Yellen and their statements are useless; in the face of political interests, everything is pointless. Whoever takes over at Wosh and Hasset, the subsequent coin price trends will depend on their attitude.

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MidnightTrader

· 01-13 00:31

Trump is at it again, this time directly targeting the Federal Reserve. The independence of the central bank is about to be compromised. --- What does the new high in gold indicate? The market is panicking, and the political interference is too obvious. --- Powell is right; this is blatant coercion. The question is, can the Fed really withstand it? --- Either of the two Kevins could change the game if they take over. Rate hikes delayed until June? Crypto still has to wait a bit longer. --- It's hilarious. Trump got impatient after only a 75 basis point cut. Managing expectations is an art too. --- The Fed has become a political tool. Yellen and others' warnings are not without reason. Is inflation about to rise again? --- Weakening dollar and new high in gold prices—this combination signals something very obvious: funds are bottom-fishing and seeking safety. --- JPMorgan's prediction of no rate cuts for the entire year is spot on. Don't expect any surprises in the first half. --- The Supreme Court will have a verdict in two weeks. Dispersed power is actually a shield for Powell. --- The market remains calm, but the divergence in the pace of rate cuts afterward is comparable to forks in the crypto world.

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