#战略性加仓BTC 🔥 Year-End Drama: Trump Once Again Pressures Federal Reserve Chair Jerome Powell
Yesterday (December 30), President Trump reiterated a stance that has been repeatedly expressed — he wants to fire the current Federal Reserve Chair Jerome Powell. Moreover, he is also considering filing a lawsuit against Powell, accusing him of "resigning."
This is not the first time. As early as July this year, a nearly identical "threat-withdrawal" drama played out. The underlying logic is quite simple: Trump wants the Fed to adopt more aggressive rate cuts to stimulate economic growth, while Powell's Fed appears more cautious and conservative. There is a fundamental divergence in policy expectations on both sides.
So, will he really fire him this time? Honestly, from legal and market realities, the probability of directly dismissing the Fed Chair due to policy disagreements is extremely low. Many refer to this as the "ultimate nuclear option" in financial markets. A more likely scenario is: Trump continues to pressure the Fed while preparing public opinion for the upcoming appointment of the next Fed Chair in January. Rather than chaos, it’s more like a carefully designed "high-pressure game" — exerting extreme pressure to set the tone for future policy directions.
What impact does this have on the crypto market?
The key point here: regardless of personnel changes at the Fed, the broader political push for looser monetary policy has already been set. This is not bad news for investors holding risk assets like Bitcoin and Ethereum. Loose liquidity typically boosts valuations of risk assets, and cryptocurrencies, as tools for hedging inflation and policy risks, often benefit.
In simple terms, this year-end "firing storm" is not a signal of market chaos but rather a stress test before the next policy cycle begins. It makes the medium-term outlook for crypto assets more certain.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
8 Likes
Reward
8
3
Repost
Share
Comment
0/400
HodlOrRegret
· 6h ago
Hey, wait a minute, is loose monetary policy definitely happening? We haven't risen enough yet; there should be some action earlier this year.
View OriginalReply0
SelfStaking
· 6h ago
It's all just storms in a teacup; the real show is on the side of easing expectations, and those holding coins are winning big.
View OriginalReply0
GasFeeBeggar
· 6h ago
This move is really just paving the way for a loose policy. On the surface, it's all about fighting, but in reality, it's all about preparing for next year. Anyway, interest rates will still have to be cut in the end, so holding onto our assets is the way to go.
#战略性加仓BTC 🔥 Year-End Drama: Trump Once Again Pressures Federal Reserve Chair Jerome Powell
Yesterday (December 30), President Trump reiterated a stance that has been repeatedly expressed — he wants to fire the current Federal Reserve Chair Jerome Powell. Moreover, he is also considering filing a lawsuit against Powell, accusing him of "resigning."
This is not the first time. As early as July this year, a nearly identical "threat-withdrawal" drama played out. The underlying logic is quite simple: Trump wants the Fed to adopt more aggressive rate cuts to stimulate economic growth, while Powell's Fed appears more cautious and conservative. There is a fundamental divergence in policy expectations on both sides.
So, will he really fire him this time? Honestly, from legal and market realities, the probability of directly dismissing the Fed Chair due to policy disagreements is extremely low. Many refer to this as the "ultimate nuclear option" in financial markets. A more likely scenario is: Trump continues to pressure the Fed while preparing public opinion for the upcoming appointment of the next Fed Chair in January. Rather than chaos, it’s more like a carefully designed "high-pressure game" — exerting extreme pressure to set the tone for future policy directions.
What impact does this have on the crypto market?
The key point here: regardless of personnel changes at the Fed, the broader political push for looser monetary policy has already been set. This is not bad news for investors holding risk assets like Bitcoin and Ethereum. Loose liquidity typically boosts valuations of risk assets, and cryptocurrencies, as tools for hedging inflation and policy risks, often benefit.
In simple terms, this year-end "firing storm" is not a signal of market chaos but rather a stress test before the next policy cycle begins. It makes the medium-term outlook for crypto assets more certain.