Is the Federal Reserve's Independence Crisis Coming?
The Trump administration's pressure on the Federal Reserve has triggered a chain reaction. Powell publicly countered, accusing this of being "an attempt at political manipulation of interest rates," taking a firm stance. White House Treasury Secretary Yellen reportedly communicated with the President late at night, expressing concern over the development of the situation. More dramatically, former Fed Chairs Yellen, Bernanke, and Greenspan issued a rare joint statement warning that such practices "are like chaos in emerging markets and could severely damage the economy," with central banks worldwide also expressing support for independence.
There are also differing voices within the Republican Party. Senators Tillis, Cramer, Moulkowski, and other key figures publicly condemned the pressure on the Fed, emphasizing that independence must be inviolable. Although Yellen denied significant disagreements, insiders revealed that Powell's stance is stronger than expected.
Currently, there are two key uncertainties: the Supreme Court is about to hear the case of Trump dismissing Fed Board Member Cook, with two major political battles unfolding within two weeks. Coupled with Powell's upcoming term in May, he may choose to resist rather than step back.
This game over monetary power is becoming the biggest uncertainty in the market. Stable expectations have been shattered, long-term bond yields are more volatile, and risk assets like $DOGE, $SUI, and $SOL are fluctuating wildly. Investors need to closely monitor this development.
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NftBankruptcyClub
· 01-14 11:28
Wait a minute, this political drama is directly impacting the coin price, even SOL is affected… Powell's tough resistance move caught me off guard
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The Fed's independence being messed up, the crypto circle has to take the blame too, it's really incredible
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Three former chairmen teaming up to criticize the president, this situation… feels like the US financial system is playing with fire
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DOGE's plunge is understandable, with such high political uncertainty, who dares to heavily hold risk assets
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Powell is going all out, facing off in May's term, this guy is really not afraid
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The independence of the central bank being challenged, the whole world is panicking, we can only watch the coin prices and feel anxious with me
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I love watching the internal conflicts within the Republican Party, but the crypto enthusiasts are suffering… SOL's drop has shattered my mentality
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ThesisInvestor
· 01-12 23:56
Powell is really determined this time. Several former chairs have spoken out, and this matter isn't so simple.
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The independence of the Federal Reserve is truly at risk. The recent volatility in SOL is a warning sign.
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Political struggles affecting monetary policy—honestly, no one is going to make money.
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Two major cases in two weeks, Powell's term in May... this timing is quite critical.
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There are opposition voices within the Republican Party, indicating that this issue has indeed crossed the line, which is positive for central bank independence.
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Wait, will this really affect SOL's price? It feels more impactful than the FED rate cut news.
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The previous three chairs jointly opposed this, which is uncommon and shows that the situation is really serious.
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DOGE and SOL are dancing to the tune of Federal Reserve independence. I truly respect this logic.
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AllInAlice
· 01-12 23:52
Oops, Powell really toughened up this time, this is getting interesting.
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Political struggles are happening, and the crypto world is bound to suffer. It's hard to predict how Solana will perform this time.
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Yellen and others have joined forces to make a statement. This situation must be quite serious.
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Wait, is the Cook case about to be sentenced? Things might get even more chaotic then.
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Honestly, the independence of the Federal Reserve affects my holdings more than the price movements.
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Even Bessent has to hold meetings at midnight to explain, the thermometer between the White House and Powell is rising.
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This week, SOL was again dragged down by political factors. I'm really fed up. Please don't add more variables.
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Within the Republican Party, opposition to pressure only indicates the problem is more serious. This matter isn't that simple.
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In May, Powell might directly compare himself to Trump. The crypto market should be prepared for big volatility then.
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When long-term bond yields fluctuate, risk assets are the first to be affected. I need to be more cautious with my leveraged positions.
View OriginalReply0
BanklessAtHeart
· 01-12 23:48
Powell is really showing some backbone this time; I’ve never seen several former chairs speak out together... Now, the market will have to sway with this power struggle.
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If the independence of the Federal Reserve truly faces issues, SOL and DOGE might be in for a rollercoaster ride.
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This is hilarious—Trump vs. Powell, this is more exciting than a drama.
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Bond yields are all over the place; no wonder the on-chain activity has been so volatile these days. Risk assets really can't hold up.
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The key is the Cook case at the Supreme Court. The uncertainties in May are too many. Holders need to stay calm during this period.
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Even members of the Republican Party are opposing it, indicating that this issue has indeed crossed the line... If the independence of the Federal Reserve is truly compromised, the global financial system will have to be reshuffled.
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I think the most critical point is Powell’s term ending in May. He might actually choose to oppose. During this window, who dares to make a definitive prediction on how crypto assets will move?
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CryptoGoldmine
· 01-12 23:43
The more intense the Federal Reserve's independence issues, the greater the volatility in risk assets. From the growth curve of the computing power network, this uncertainty is actually an opportunity for deployment.
Bond yields fluctuate, indicating that market expectations are being reshaped. What we need to focus on is not the political drama, but the real impact on liquidity behind it. The May Jerome Powell term window is worth noting.
Instead of following the ups and downs of DOGE and SOL, it's better to keep an eye on the changes in computing power yield ratios. Historical experience tells me that extreme uncertainty often signals a buying opportunity.
From a technical perspective, the valuation logic of current risk assets is being rebuilt, and this process itself can provide room for ROI recovery.
View OriginalReply0
MonkeySeeMonkeyDo
· 01-12 23:39
Oh no, Powell really went all out this time. It feels like risk assets are about to go on a roller coaster ride.
SOL has been so volatile recently, it's hard to tell the direction. When political factors come into play, it gets even more confusing.
This pattern is a bit like Game of Thrones—who really has the final say?
But on the other hand, for several former chairpersons to come out together and take sides, that must be pretty intense. I've really never seen anything like it.
A court hearing for the Cook case within two weeks? Then this round of market行情 might need to be re-priced.
View OriginalReply0
TokenRationEater
· 01-12 23:35
Powell is really tough, it seems like he's going to stand his ground this time. Political interference in central banks is unacceptable anywhere.
If the Federal Reserve is truly sidelined, the current market trend in the crypto space will be hard to predict. SOL, stay steady for me.
Previous chairmen jointly criticized this, the signal is strong... it feels like risk assets are going to be shaken up quite a bit.
Dare to challenge the independence of the central bank? That's treating democratic countries like emerging markets.
Bessent making a call late at night? This situation feels a bit unstable haha.
We'll see the outcome within two weeks. Let's watch how DOGE and SUI move then, the recent uncertainty is hard to bear.
Will Powell be reappointed in May? This is a critical moment, he definitely won't back down this time.
Actually, once the independence of the Federal Reserve is shaken, the entire market confidence will collapse, more frightening than any technical analysis.
View OriginalReply0
BrokenYield
· 01-12 23:30
systemic risk at peak levels rn... when three fed chairs unite, you know the correlation matrix is about to implode hard. smart money's already repositioning into stablecoins while retail fomo's still chasing sol bounces lol
Is the Federal Reserve's Independence Crisis Coming?
The Trump administration's pressure on the Federal Reserve has triggered a chain reaction. Powell publicly countered, accusing this of being "an attempt at political manipulation of interest rates," taking a firm stance. White House Treasury Secretary Yellen reportedly communicated with the President late at night, expressing concern over the development of the situation. More dramatically, former Fed Chairs Yellen, Bernanke, and Greenspan issued a rare joint statement warning that such practices "are like chaos in emerging markets and could severely damage the economy," with central banks worldwide also expressing support for independence.
There are also differing voices within the Republican Party. Senators Tillis, Cramer, Moulkowski, and other key figures publicly condemned the pressure on the Fed, emphasizing that independence must be inviolable. Although Yellen denied significant disagreements, insiders revealed that Powell's stance is stronger than expected.
Currently, there are two key uncertainties: the Supreme Court is about to hear the case of Trump dismissing Fed Board Member Cook, with two major political battles unfolding within two weeks. Coupled with Powell's upcoming term in May, he may choose to resist rather than step back.
This game over monetary power is becoming the biggest uncertainty in the market. Stable expectations have been shattered, long-term bond yields are more volatile, and risk assets like $DOGE, $SUI, and $SOL are fluctuating wildly. Investors need to closely monitor this development.