There is an unavoidable issue right now—Trump is using personnel tactics to reshape the power landscape of the Federal Reserve.

His idea is straightforward: interest rates are too high and need to be lowered. Publicly announcing a target of 1% is driven by economic considerations during an election year. How to achieve this goal? Through personnel arrangements. Powell's term ends in May 2026, and Trump has made it clear he will nominate his own candidate—an "obedient" chairperson. Another more aggressive move is attempting to dismiss Board Member Lisa Cook. Once this case goes to court, it will become a critical moment in determining the independence of the Federal Reserve.

Internally, things have long been unstable. Although there were three rate cuts in 2025, disagreements within the Fed have become increasingly apparent. Trump-appointed board members are advocating for more aggressive easing policies—such voices were rarely heard before.

In the short term, the legal framework can still hold back some actions. But what is truly concerning is the long-term issue—the gradual erosion of the Federal Reserve's independence and credibility. Once the market believes that policies are serving political interests, the consequences could be severe. The US dollar's status as the global reserve currency might be shaken, and the risk of runaway inflation could rise. The crypto market is most sensitive to these changes.

Two events to watch closely: how the Supreme Court rules on Cook's dismissal case, and whether Trump can successfully appoint a new chair after Powell steps down. The outcomes of these two will directly test whether the Federal Reserve's independence is truly maintained or substantively compromised.