Three Steps to Seize Power from the Federal Reserve! Trump's Astonishing Blueprint to Reshape the American Central Bank is Revealed, the crypto market reacts.

On August 26, a breaking news from the White House shocked Washington and global financial markets — U.S. President Trump announced the immediate dismissal of Federal Reserve Board of Governors member Lisa Cook. This is not only a rare personnel change but is also seen as the beginning of a planned and step-by-step “power grab” — a clear “three-step” roadmap aimed at completely undermining the independence of the Federal Reserve, firmly placing the decision-making power over the U.S. dollar interest rates in the hands of the White House.

Step One: Seize Control of the Board

Core Strategy: Achieve a majority position among the 7 members of the Federal Reserve Board of Governors.

Current situation: Trump has appointed 2 members to the board, and quickly nominated economic advisor Stephen Miran to fill the position after the resignation of Adriana Kugler, who was appointed by Biden.

Key action: Impeach Cook, freeing up the 4th seat to achieve a “Trump majority” in the 7-member board.

Legal risk: Cook has filed a lawsuit challenging the applicability of the “for cause removal” provision in the Federal Reserve Act, and the case is likely to go to the Supreme Court.

Meaning: Once he masters the majority of the Board, Trump will be able to influence all major monetary policies and regulatory decisions.

Step 2: Indirect Control of the FOMC

FOMC Composition: 7 members of the Federal Reserve Board of Governors + 5 regional Federal Reserve Bank presidents, totaling 12 votes.

Strategic Breakthrough: Although the regional chair cannot be directly appointed, the council has the power to veto their reappointment.

Implementation method: After controlling the board of governors before March next year, refuse to reappoint regional chairs who do not align with White House policies, gradually “cleaning” the FOMC.

Consequences: Breaking the firewall that has protected the independence of the Federal Reserve since 1913, allowing the will of the White House to directly infiltrate interest rate decisions.

Step 3: Build the “Interest Rate Cut Majority”

Trump’s policy preference: clearly advocates that “interest rates are too high,” hoping for a significant rate cut to stimulate the economy, housing market, and political support.

Execution result: Interest rate decisions will be more based on political needs rather than inflation and employment data.

Potential effects: short-term economic growth or prosperity, but could lead to inflation and instability in financial markets in the long term.

Historical Alarm and the Echoes in the Cryptocurrency Market

Historical Cases:

In the 1970s, Nixon pressured the Federal Reserve → Triggered hyperinflation

The central banks of Turkey and Argentina have lost their independence → currency crisis

Crypto Perspective:

One of the core narratives since the birth of Bitcoin is the uncertainty against centralized monetary policy.

When the dollar policy can be changed at any time by the president, the appeal of “code is law, supply is fixed” cryptocurrencies will greatly increase.

Extended Impact: Trump is simultaneously reshaping financial regulatory agencies (such as the CFTC) and appointing cryptocurrency-friendly Republican officials, which may objectively bring a more lenient regulatory environment to the crypto market.

Market and Global Impact

Short-term market reaction:

U.S. stock futures fell

Gold rises (safe-haven demand)

The volatility of the US dollar index has increased.

Long-term Risk:

The international credibility of the US dollar has been damaged.

Global capital is accelerating the search for alternative assets (gold, bitcoin, decentralized finance)

Cryptocurrency Market Opportunities:

Mainstream coins like Bitcoin and Ethereum may benefit from the narrative of “decentralized hedge assets”.

Demand for stablecoins may rise due to uncertainty in dollar policy.

Conclusion

Trump’s “Three-Step Power Grab of the Federal Reserve” plan is not only a significant turning point in American financial history but could also become a catalyst for the global monetary system and the cryptocurrency market. At a time when the stability of the traditional financial system is being challenged, the value proposition of decentralized assets will be validated once again.