Recently, the policy disagreements between the Federal Reserve Chair and the White House have become a focal point. The key issue is not just the pace of interest rate cuts but also the independence of the central bank under political pressure — which directly impacts BTC and the entire crypto market.

On the surface, it appears to be personnel issues. Powell's term will end in March next year. According to the U.S. system, the President needs to nominate a successor, and the Senate is responsible for confirmation. But the current timing is somewhat special. Trump has recently made multiple public statements expressing dissatisfaction with the Fed's rate cut policies, even explicitly saying "those who disagree with its views will not become Federal Reserve Chair" — the implication is quite clear.

Powell's response has been equally firm. He recently stated he would not resign voluntarily and reiterated the principle of the Fed's monetary policy independence, emphasizing that decisions are not directed by the White House. This kind of statement seems routine but is actually a direct confrontation with political pressure, drawing a line for the central bank's policy autonomy.

Why is this so important to the crypto world? Because the Fed's policy direction determines the liquidity environment. Presidents usually prefer to maintain low interest rates to stimulate economic growth, while the Fed needs to balance controlling inflation and supporting employment. These two goals often conflict. If the independence of the central bank is eroded, markets will face more uncertainty — policies may no longer be based solely on economic data but influenced by political considerations. This has a significant impact on assets like BTC, which are sensitive to liquidity.

Replacing Powell is not that easy. Even if the President nominates a new candidate, Senate confirmation is not automatic. Currently, the political landscape is complex, and whether enough votes can be gathered remains uncertain.

The core of this dispute is an old question: how independent should a central bank be? Historically, those that maintain policy consistency and are not swayed by short-term political winds tend to be more credible in crisis response, which also supports confidence in BTC and other risk assets.

What do you think? Can Powell defend the line of independence? How will this power struggle ultimately affect interest rate expectations and market liquidity?