The recent developments in the global financial circle have been quite intense. The "war of words" between Trump and Federal Reserve Chairman Powell has become increasingly fierce, with the core issue being quite straightforward—Trump is unhappy with the Fed's slow pace of rate cuts. This year, the Fed has cut rates three times, each by only 25 basis points, far below his expectations, and he has publicly criticized Powell for being "rigid in thinking" and has repeatedly threatened to fire or sue him.

The Federal Reserve has traditionally maintained independence, so such direct pressure is quite rare. Although there is debate over whether legally the Fed Chair can be dismissed, the Supreme Court has indicated it will protect Fed officials. However, this game of tug-of-war has already unsettled the markets. Interest rate policies influence global capital flows, and there is no consensus within the Fed—some advocate for speeding up rate cuts, while others prefer to wait and see. The pace of rate cuts next year remains uncertain. This chaos directly impacts the stock and bond markets, raising concerns about the safety of assets held.

Ironically, the crypto community is gaining more attention amid this chaos. It’s understandable—when traditional financial markets are turbulent due to policy uncertainties, the decentralized nature of crypto assets becomes more attractive. They are not subject to devaluation based on a country's policies or officials' attitudes, which in itself is a form of protection. Coupled with the dollar facing devaluation pressures, more people are seeking diversified assets to hedge risks, and cryptocurrencies naturally become one of the options.

Whether in traditional finance or the crypto space, what is most needed is stable expectations. The tug-of-war between Trump and the Fed is far from over, and after the Fed's leadership change next year, policy directions could become even more aggressive. What do you think about this uncertainty? Why not share how you are adjusting your asset allocation to manage risks?