2026-01-13 01:23:52

Since the beginning of 2026, the policy disagreements between the White House and the Federal Reserve have intensified, triggering fierce fluctuations in the global financial markets. This is not only a policy dispute between power institutions but also a deep game concerning the credibility of the US dollar.

The White House continues to pressure the central bank's decisions: rumors of judicial investigations involving the Federal Reserve have caused alarm, public opinion is pushing for a low-interest-rate cycle, and there are even plans to introduce disruptive housing finance stimulus schemes. Meanwhile, Fed Chair Jerome Powell remains steadfast, repeatedly emphasizing the sanctity of the central bank's independence, but signs of internal policy tilt are beginning to emerge.

This standoff has rippled through global markets. The US dollar index experienced its steepest single-day decline in a decade; the Bank of Japan unusually sold off a large amount of US Treasuries (worth $20 billion); panic funds accelerated flows into safe-haven assets, with London spot gold temporarily surpassing $4,600; Asian stock markets rose against the trend, and top global asset managers like BlackRock began reducing their holdings of US Treasuries. The European Central Bank issued warnings—US dollar dominance faces a substantial challenge.

History always repeats itself astonishingly. Fifty years ago, Nixon's intervention in the independence of the central bank ultimately triggered long-term stagflation in the US. Today, if monetary policy is manipulated for political goals amid already weakening economic fundamentals (disappointing non-farm payrolls, rising unemployment), this gamble could ignite even greater financial risks.

The apparent battle over interest rates is fundamentally a life-and-death gamble over the credibility of the US dollar. As global capital accelerates diversification of foreign exchange reserves, does this signal the end of an era? Share your thoughts in the comments—how will the US dollar system evolve, and who will be the next major global reserve asset?

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PancakeFlippa

· 4h ago

Is this another routine? The White House and the Federal Reserve are clashing, and in the end, retail investors are the ones who suffer. The dollar system should have been reformed long ago. Now the whole world is diversifying assets, and US Treasuries are no longer attractive. Can Powell withstand this wave? It feels like immense pressure. The Bank of Japan selling 20 billion USD in US Treasuries is like casting a vote of no confidence against the dollar. I went straight into gold when it broke 4600, betting climate change can't hold it back anymore. Isn't the lesson from Nixon's era clear enough? Do we really have to repeat the same mistakes? Let's wait and see, this time the dollar hegemony is truly at risk of being shaken.

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SatoshiSherpa

· 10h ago

Powell's toughness can't match the pressure from the White House. History is really repeating itself, and the days of the dollar are probably getting harder and harder. Wait, did the Bank of Japan really sell 20 billion USD in bonds? That's a pretty bold signal—experience counts. Is dollar hegemony about to shake? Hard to say, but breaking 4600 in gold is definitely a win. The White House is playing with fire. Manipulating monetary policy for short-term political gains will eventually come at a cost. So now, should we stockpile gold or go all-in on Bitcoin? Seeking advice from all the veterans here. The independence of central banks is just a joke. Politicians around the world all want to choke the neck of the central bank. Non-farm payrolls are so bad that they still want to cut rates to stimulate. Are they betting the US economy can hold up? The next reserve asset will definitely not be the dollar, but it’s not the RMB either. Maybe it’s crypto... By the way, BlackRock has started reducing its holdings of US bonds. Small investors are still foolishly holding on—truly tragic. The day the dollar's credit collapses seems to be getting closer and closer.

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MetaverseLandlord

· 10h ago

Powell is really cornered this time, and the White House is playing their hand quite aggressively. The dollar has fallen so much that even the Bank of Japan is starting to sell off US Treasuries... It feels like this time is truly different. So is it still a good time to buy gold, or should we just stockpile Bitcoin as a safety net? History is really repeating itself—are we about to see another Nixon-era scenario? It feels like the global order is about to be reshuffled. Is dollar hegemony coming to an end? I can't believe it, but the data suggests it might really be hanging in the balance.

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CryptoCrazyGF

· 10h ago

The Federal Reserve is really being played out, this time it's no joke --- We've all seen Nixon's move, history never learns its lesson... --- Japan selling $20 billion in US bonds, the signal is too obvious, is the dollar really going to fall behind? --- Basically, it's a confrontation between power and independence, the losers will always be retail investors --- I’ve been saying for a long time that gold breaking 4600 is a good time to stock up, but we're just getting started --- The Waterloo is coming soon, it feels like everything should be changed --- Powell won't last much longer, public opinion is too strong --- Dollar hegemony is wavering? The next generation of reserve assets depends on who can take over

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GweiWatcher

· 10h ago

Powell is really caught in the middle this time, the White House is being too harsh. --- It's another talk of a dollar crisis. Honestly, I'm more concerned about whether BTC will break new highs amid the chaos. --- The Bank of Japan sold $20 billion in US bonds. The signal is clear—it's really the era of diversified reserves. --- Nixon's old tricks are now being replayed. It feels like the financial system is about to be reshuffled. --- Instead of worrying about the dollar, it's better to ask how to allocate your assets safely. --- Gold breaking 4600—that's the most honest price signal, right? --- What actual impact does the White House and Federal Reserve fighting have on us? It still depends on your own wallet. --- Stagflation + political intervention, this combo is too dangerous. It feels like a storm is coming. --- The European Central Bank has even issued warnings, indicating the problem is really serious. --- Diversifying foreign exchange reserves, to put it simply, is about shedding the dollar burden.

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