Washington staged a brilliant plot twist. Trump tried to pressure Powell to accelerate rate cuts through investigations, but it backfired, instead elevating Powell to the status of "guardian of the system."

The rapid change in the situation is astonishing. Previously, the market widely expected Powell to step down in May, but now there is increasing momentum for him to stay until 2028. Ironically, the dovish successor favored by Trump, Haskett, is essentially out of the picture, while hawkish Waller's support is rising steadily—this political pressure has completely failed.

The market's reaction is the most honest indicator. After the news broke, the dollar plummeted, gold soared, and investors voted with their actions to support the Fed's independence. Powell's late-night response video went viral, garnering praise, and members of both parties rarely united to criticize interference. Three former chairs also issued joint statements of support. Trump's "rate cut rallying cry" has completely fizzled out, and Powell may even shift to a more hawkish stance to demonstrate neutrality.

The clear takeaway for investors is: the pace of rate cuts now depends on data, not political appearances. In the short term, safe-haven assets will be more attractive. Instead of betting on policy easing, focus on defensive sectors and short-term bonds. This farce actually illustrates a simple truth—the independence of the central bank is the market's ballast, and it must not be disturbed.