2025-12-30 23:20:37

The recent turmoil in the global financial circle is truly lively! Trump is pressuring Federal Reserve Chair Powell, not only openly stating he wants to fire him but also threatening to sue on the grounds of "gross misconduct"—the reason being the $2.5 billion Fed headquarters renovation project. Essentially, it's an attempt to force Powell to cut interest rates to 1%. This political and financial showdown is stirring up the global liquidity landscape.

Interestingly, Powell was initially promoted by Trump. However, when the rate-cutting pace didn't meet Trump's expectations, he became a "thorn in the side." Trump has explicitly stated: "Anyone who disagrees with my rate-cutting policy should never expect to sit in the Fed Chair position." His preferred candidates, Kevin Hasset and Kevin Warsh, are dovish and likely to implement more easing policies if they take office.

What is the current situation? The Fed has cut interest rates three times in a row by 2025, bringing the rate down to 3.5%-3.75%. But by the December policy statement, the Fed hinted that it might only cut once in 2026. Compared to Trump's 1% target, the gap is enormous. The divergence and political pressure have already created a standoff.

This game could have a significant impact on the crypto world. Previously, when Trump exerted pressure, the US dollar index briefly fell to its lowest since 2022, and US bonds were heavily sold off. As a high-risk asset, cryptocurrencies are especially sensitive to liquidity changes—just the expectation of rate cuts caused Bitcoin to retreat over 30% in a month, with 180,000 traders liquidated.

If Trump truly pushes interest rates down to 1%, a large influx of liquidity could flood the market, potentially triggering an epic rally in the crypto space. Conversely, if political interference undermines the Fed's independence, the dollar's credibility might collapse, leading to risk-off selling, and the crypto market could be bloodied.

Powell's term as Chair runs until May 2026, with board members' terms lasting until 2028. This power struggle is far from over. What do you think? Can Trump push rates down to 1%? Will this game bring a liquidity frenzy to the crypto world, or will it trigger another wave of liquidations?

BTC0,61%

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CommunityJanitor

· 9h ago

Now the independence of the Federal Reserve is really about to be compromised, Powell is being roasted on the fire... Honestly, a 1% interest rate is outrageous. Back then, the crypto market had already taken off, but the dollar was doomed too. Watching the 180,000 liquidation wave was really uncomfortable. If they really cut to 1% this time, who would dare to take over? A dovish stance coming to power probably means easing, but only if the dollar's credibility still holds... Feels like betting on a collapse. The line between liquidity frenzy and bloodbath seems to be very thin; I bet the probability of a bloodbath is higher.

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RunWhenCut

· 9h ago

Powell is really getting played this time, going from favorite to outcast so quickly... --- A 1% cut could really boost the crypto market, but if the dollar's credibility collapses, we’ll all be buried with it. --- These two's drama of tearing each other apart is truly spectacular; it's just us retail investors who have to pay the price for their political games. --- Honestly, it all depends on whether Trump has real ability to push through, or if he's just throwing tough talk into the air. --- I was still around during the 30% retracement that triggered 180,000 liquidations; now hearing the word "gambling" makes my heart race. --- If the Federal Reserve's independence is truly compromised, that would be the biggest black swan in the crypto world... --- Let's wait and see what happens before May 2026; this time window could get very crazy. --- Liquidity frenzy or bloodbath, there's no middle ground—it's all about how long Trump can keep pressing downward.

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NotSatoshi

· 9h ago

Powell is really being set up this time. They promoted you initially just to kill you now... This political game is played to perfection. Trump cut to 1%? Uh... I think that's unlikely, Powell can still hold on. If they really cut to 1%, the crypto market would indeed take off, but the question is, do we still need the dollar then? That previous rate cut expectation caused 180,000 liquidation events, and if they really go to 1% this time... be careful, it could be another big purge. Once the Fed's independence is compromised, the crypto market won't be able to count on it either. Safe-haven sell-offs could lead to a bloodbath in minutes. It feels like choosing between a liquidity frenzy and a system collapse—I wouldn't choose either. Wait, can Trump really sue over a $2.5 billion renovation project? Haha, what's the reason?

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ruggedNotShrugged

· 9h ago

Powell, this guy, is truly being set up. If I had known earlier, I wouldn't have let Trump promote you. I mentioned during the 180,000 liquidation event that this is all the cost of political games; the crypto world gets caught in the crossfire. If the Federal Reserve's independence really disappears, the collapse of the dollar's credibility might make our BTC the last lifeline. 1% interest rate? Ha, just dreaming. Powell would never agree to that, even in death. The biggest risk in recent years isn't actually the coin prices, but the very US dollar system itself starting to have problems. There's just one tweet between liquidity frenzy and bloodbath—who can hit the precise point? The power struggle will only be clear by 2026. The crypto world will have to endure a bit more.

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