The split in the US: The White House versus the Fed

[vivi212]

Yesterday, Powell accused the Trump administration of political pressure after receiving subpoenas from the US Department of Justice threatening criminal charges.

Given how Powell has always tried to keep his distance between politics and his work, this statement is in fact an unprecedented case. For the first time, the head of the Federal Reserve speaks directly about pressure from the White House and directly points to the threat to the independence of monetary policy.

The formal pretext is the same testimony in the Senate about the reconstruction of the Federal Reserve buildings for $3.1 billion. It is this topic that Trump continues to cling to, using it as a convenient lever of pressure.

What does this mean for the crypto market?

After the announcement, the market reacted with a slight negativity, but without panic. The dollar has fallen, non-ferrous metals have risen, and this is logical. There is not much time left before the end of Powell's term (mid-May). Therefore, most likely, we will see only a local negative effect. Therefore, the medium-term goals for the market remain the same.

It is important to understand that if such a conflict had unfolded in the years 23-24, the effect would have been much more serious. As the market is already looking further ahead, there is a change in the leadership of the Fed.

Most likely, before the end of his term, Powell will make harsh statements more than once and, in fact, put a stick in Trump's wheels. This is not so much about economics as about personal conflict. In this case, we can hardly expect further rate cuts under Powell.

But as soon as Trump's man is at the helm of the Fed, the market may well see an aggressive pace of rate cuts — with an attempt to "quickly catch up" and what impact this will have on the market is not yet clear.

[Ambatman]

Given how Powell has always tried to keep his distance between politics and his work,

I doubt it would be possible for him to be political neutral
Since we humans have interest and we would unknowingly support a side that can help with our interest.

The split in the US: The White House versus the Fed

Sadly this is more of a Republic vs Democrat
Everything about the US is this
Internal crisis it's eating them up.

as soon as Trump's man is at the helm of the Fed, the market may well see an aggressive pace of rate cuts

I don't know why I felt scared when I saw the statement Trump's man
I don't hate the man but we have seen that he kinda cares about enriching himself and is family.

[philipma1957]

Given how Powell has always tried to keep his distance between politics and his work,

I doubt it would be possible for him to be political neutral
Since we humans have interest and we would unknowingly support a side that can help with our inter meest.

The split in the US: The White House versus the Fed

Sadly this is more of a Republic vs Democrat
Everything about the US is this
Internal crisis it's eating them up.

as soon as Trump's man is at the helm of the Fed, the market may well see an aggressive pace of rate cuts

I don't know why I felt scared when I saw the statement Trump's man
I don't hate the man but we have seen that he kinda cares about enriching himself and is family.

Hey trump appointed him.

This Trump saying I am the boss obey me.

[Zlantann]

Most likely, before the end of his term, Powell will make harsh statements more than once and, in fact, put a stick in Trump's wheels. This is not so much about economics as about personal conflict. In this case, we can hardly expect further rate cuts under Powell.

But as soon as Trump's man is at the helm of the Fed, the market may well see an aggressive pace of rate cuts — with an attempt to "quickly catch up" and what impact this will have on the market is not yet clear.

Powell had stood firm in the face of all this opposition from Trump. He is a man with a track record of serving without political bias. That US why he worked with both Democrats and Republicans. Interest rates will be lowered if the Fed deems it necessary. Trump is simply eroding the independence of the central bank, which might reduce investors' confidence in the US economy.

Hey trump appointed him.

This Trump saying I am the boss obey me.

The US have always allowed the Feds to be independent of the President’s interference. We see such pressure on Central Bank heads in countries like Argentina, Russia, Turkey, Zimbabwe and Venezuela and not in advanced country like the US. Trump wants to control all the arms of government.

[_Miracle]

Given how Powell has always tried to keep his distance between politics and his work,

I doubt it would be possible for him to be political neutral
Since we humans have interest and we would unknowingly support a side that can help with our inter meest.

The split in the US: The White House versus the Fed

Sadly this is more of a Republic vs Democrat
Everything about the US is this
Internal crisis it's eating them up.

as soon as Trump's man is at the helm of the Fed, the market may well see an aggressive pace of rate cuts

I don't know why I felt scared when I saw the statement Trump's man
I don't hate the man but we have seen that he kinda cares about enriching himself and is family.

Hey trump appointed him.

This Trump saying I am the boss obey me.

This is The Executive branch of a Constitutional Democratic Republic continuing to impose their personal will by coercion and force.

Every person who values liberty should be concerned and speak up while they are still free to do so.

[davis196]

I don't care about the Trump vs. Powell conflict. All I do care is having a weakened US dollar, which could pump the prices of crypto.
Unfortunately, such crypto pump won't be caused by mass crypto adoption, it will be caused by the weakening of the US dollar.
Jokes aside, this conflict causes less trust in the US dollar and the USA and more uncertainty in the global economy and financial markets.
Maybe Trump is right, the Federal Reserve must lower the interest rates even further. Or maybe the AI bubble bursting and the upcoming crash on the financial markets will force the Federal Reserve to lower the interest rates without Trump having to pressure Powell.

[Furball808]

Most likely, before the end of his term, Powell will make harsh statements more than once and, in fact, put a stick in Trump's wheels. This is not so much about economics as about personal conflict. In this case, we can hardly expect further rate cuts under Powell.

It’s politics. Most economists or experts would probably prefer an independent fed but under Trump’s administration this may not be the case anymore. If Powell gets fired and fed gets controlled by the us government, Trump can do anything like cutting interest rates up to his heart’s desire. When the news hits, expects stocks to fall.

[colinistheman]

Most likely, before the end of his term, Powell will make harsh statements more than once and, in fact, put a stick in Trump's wheels. This is not so much about economics as about personal conflict. In this case, we can hardly expect further rate cuts under Powell.

It’s politics. Most economists or experts would probably prefer an independent fed but under Trump’s administration this may not be the case anymore. If Powell gets fired and fed gets controlled by the us government, Trump can do anything like cutting interest rates up to his heart’s desire. When the news hits, expects stocks to fall.

Trump cannot fire Powell, and he does not need to, because Powell's term as Fed chairman is only a few months away from ending.

Even if the Fed has a new chairman, and one who is an ally of Trump, that does not mean the Fed is controlled or manipulated by the Trump administration. The Fed consists of 12 members, and most of the Fed's policies are adopted through voting. Therefore, if the Fed chairman is an ally of Trump, that only increases the chances of influencing Fed decision, nothing more.

[abhiseshakana]

I read Powell's words as smooth alarm for market and global elit that anything happen on institution legacy will be under Trump responsibility, because Trump pressure has surpassed  institutional authority. Trump insist to use interest rate as political tools and economic competition instrumen because FED is part of executive not independence institution. If Trump's supporter replacing Powell, actually it will speed up Bitcoin legitimation, because anything broken on US Monetary institutional credibility will cause market negative sentiment and also market adaptation.

So far, what keep FED independence is balance of power between state and non state actor based on tradition on implicit norm. On this tug of war between actor, global elit will bring inter legislative party closely monitor on any FED decision and spread  or stregthen narrative about against FED meaning threathening economic stability. What they will do to containing Trump are make coordination with other central bank to be lender of last resort and backbone of global liquidity.

On the other hand, global elit will resuce its dependence to USD gradullay as risk management. They will also do political pressure by cutting their support on political donation. They will let Trump understand that long term credibility is important than short term stability.

[Fortify]

Yesterday, Powell accused the Trump administration of political pressure after receiving subpoenas from the US Department of Justice threatening criminal charges.

These are the actions that dictatorships take, having a recognized central bank that looks out for the economy and currency of the country independent of whatever flavor of politics is happening is a blessing. However much like Trump has attacked many institutions out there that made America as great as it is (was), he is trying to undermine the US treasury now because it does not bend to his fickle whims. This will be devastating to Americas finances and reliability in future, just look at Turkey which has had crazy inflation rates since erdogan decided to wade in and take similar action. Trump is simply too dumb to know better and would insulated from the inevitable fallout with his billionaire buddies.

[Zlantann]

These are the actions that dictatorships take, having a recognized central bank that looks out for the economy and currency of the country independent of whatever flavor of politics is happening is a blessing. However much like Trump has attacked many institutions out there that made America as great as it is (was), he is trying to undermine the US treasury now because it does not bend to his fickle whims. This will be devastating to Americas finances and reliability in future, just look at Turkey which has had crazy inflation rates since erdogan decided to wade in and take similar action. Trump is simply too dumb to know better and would insulated from the inevitable fallout with his billionaire buddies.

The Feds make monetary policies based on reliable data that was collected from inflation, emplyment and other factors at a given time. Trump now wants the Feds to make a decision based on politics. The president is harming the US economy and the consequences will be evident for a long time. He is just running the US as a military head of state.

Powell has gotten the backing of some former Fed officials like  Janet Yellen, Ben Bernanke and Alan Greenspan. The heads of the European Central Bank, Bank of England, and the Bank of Canada have also shown support.

[DiMarxist]

Things love like this should not be coming as a surprise to be a surprise to Many, if you have been following up the administration of Donald Trump in this second term it's obvious that he is out on a mission. And any one that is not supporting his agendas will have problems with him. It's really bad when politicians like Trump who is more concerned about political achievements than the reality on ground will like to middle income economic and monetary regulations bodies like the federal reserve bank which is a office solely reserved for exparts and those with in depth knowledge about economic issues. Trump wants everyone to follow what he thinks is the best but that is not possible in a democracy, the united states Senate should call this Man to order because the truth is that trump is doing much harm than good to the united states of America economy. All these so called tariffs, the band of countries from coming into the united states of America are anti economic in nature.

[slapper]

You're like framing this like Powell's gonna sabotage policy because Trump subpoenaed him? Central bankers do not work like that. They are institutional creatures. Powell's defending Fed independence as a concept not because his ego got bruised.

Though maybe the result's the same either way and I'm splitting hairs.

You're taking this for something as simple as drama. Powell vs Trump, personal beef, whatever.

If Trump puts in somebody who slashes rates just to pump markets short-term, that's not "catching up". That's destruction of credibility. And on credibility. iII literally the only thing central banks have.

The fact that the crypto market is showing "slight negativity" doesn't mean that this doesn't matter. It means that the market hasn't yet priced in institutional collapse. These things are slow but then all at once.

You're hoping for aggressive rate cuts with a new leadership. Okay but cuts justified by what? If they're political rather than economic you get currency devaluation, inflation kicks back in and suddenly your gains on a dollar basis are of no import because a dollar doesn't buy as much.