Recently, there has been quite a stir at the Federal Reserve. The Department of Justice has officially issued a subpoena to Powell, investigating the hundreds of millions of dollars spent on renovations at the Fed headquarters. On the surface, it appears to be an audit storm, but in reality, there are deeper issues at play—the tug-of-war between the White House and the independence of the Federal Reserve.
The details of the matter are not complicated. After Trump returned to the White House, he was dissatisfied with the pace of rate cuts and publicly criticized Powell multiple times, even applying legal pressure in an attempt to force him to resign. Although Powell cut interest rates by a total of 75 basis points last year, he quickly blamed the high inflation on Trump's tariff policies. Neither side is willing to back down, and this public confrontation has directly ignited the current "reckoning" situation.
How much impact does this power struggle have on the crypto world? To be honest, quite significant. If Powell is suspended due to the investigation, the market expectation that interest rates will fall to 3.4% by the end of 2026 will essentially be invalidated. Once expectations change, the prices of coins like SOL and ZEC will face extremely high-frequency volatility. Global stock markets and crypto markets are already in a highly sensitive period, and any policy signals could trigger intense fluctuations.
This is the current situation—both criminal pressure and political games are in play, and it’s hard to say how stable Powell’s position really is. This unexpected variable might be the fuse that ignites a "violent rate cut" rally. All eyes are now on the negotiations between the Federal Reserve and the White House, as the market’s ups and downs could shift accordingly.
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GateUser-e19e9c10
· 56m ago
Things are really about to get turbulent now. Powell's chair is becoming increasingly unstable.
A subpoena, and the interest rate cut expectations for 2026 are completely cooled off... SOL is trembling.
The White House and the Federal Reserve are passing the buck back and forth, but in the end, it's us crypto investors who pay the price... LOL.
If he really gets suspended, this wave in the crypto circle might be the real shakeout—some are buying the dip, others are cutting losses.
With political struggles as the backdrop, the crypto market has turned into a casino. This rhythm is truly incredible.
Speaking of which, Powell probably won't be removed, right... What about Bitcoin?
The high-sensitivity period is real. Now, even a casual news piece can trigger a market move.
It feels like the whole situation is hanging in the air, and the negotiation results could rewrite the rhythm of the crypto market.
View OriginalReply0
unrekt.eth
· 01-12 02:42
Really, Powell this guy is now causing collateral damage to the entire ecosystem, and our crypto circle is suffering along with it.
Now it's all over, the rate cut expectations for 2026 are completely gone, SOL was about to take off but is now held down.
The White House and the Federal Reserve are blaming each other, and retail investors are caught in the middle, damn it.
Political struggles intensify = crypto market volatility, this logic is already very clear, staying up late to watch major events is necessary.
But on the other hand, chaos can also be an opportunity? If a violent rate cut really happens, the crypto prices could skyrocket.
If Powell really gets pushed down, market confidence will collapse, and everything could fall at that point.
Just waiting for the next move from the White House, it feels like this is just the beginning.
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rekt_but_resilient
· 01-12 02:39
Powell is really backed into a corner this time; the White House's move is too ruthless.
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Once the rate cut expectations collapse, our chips might be wasted.
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Be cautious with holdings of SOL and ZEC now; political storms are coming, and the crypto world will suffer first.
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Basically, it's a gamble on whether Powell can hold on; if he can't, the crypto market will crash directly.
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This tactic really pushes the limits, using the law as a weapon.
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Stop talking about independence; now it's all about whose fist is harder.
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The expectations for 2026 are completely gone; only tough players are still heavily invested now.
View OriginalReply0
SatoshiChallenger
· 01-12 02:31
Ironically, once again, the rise and fall of the coin price depend entirely on political games. What about the lessons of history? During the 2008 financial crisis, the Federal Reserve had even greater power, and the coin hadn't appeared yet.
View OriginalReply0
MEVictim
· 01-12 02:31
Powell is really having a tough time this round, as Trump directly plays the judicial card... the crypto world is waiting to be harvested.
View OriginalReply0
PermabullPete
· 01-12 02:28
If Powell really gets taken down this time, the crypto market is probably going to experience another big shake-up, and SOL will have to drop.
View OriginalReply0
DefiOldTrickster
· 01-12 02:24
Oh no, this is going to be fun. If Powell really gets ousted, our rate cut expectations will be dashed, and SOL and these coins will be shaken for three days.
View OriginalReply0
DefiPlaybook
· 01-12 02:23
Based on on-chain data and macro policy correlation analysis, the news of Powell being summoned indeed constitutes a systemic risk trigger point. It is worth noting that historically, periods when central bank independence is directly challenged are usually accompanied by a 30-40% increase in volatility. Currently, the crypto market's APY yield curve has already shown a significant tailing effect, which essentially reflects the market's pricing in of an expected reversal.
Recently, there has been quite a stir at the Federal Reserve. The Department of Justice has officially issued a subpoena to Powell, investigating the hundreds of millions of dollars spent on renovations at the Fed headquarters. On the surface, it appears to be an audit storm, but in reality, there are deeper issues at play—the tug-of-war between the White House and the independence of the Federal Reserve.
The details of the matter are not complicated. After Trump returned to the White House, he was dissatisfied with the pace of rate cuts and publicly criticized Powell multiple times, even applying legal pressure in an attempt to force him to resign. Although Powell cut interest rates by a total of 75 basis points last year, he quickly blamed the high inflation on Trump's tariff policies. Neither side is willing to back down, and this public confrontation has directly ignited the current "reckoning" situation.
How much impact does this power struggle have on the crypto world? To be honest, quite significant. If Powell is suspended due to the investigation, the market expectation that interest rates will fall to 3.4% by the end of 2026 will essentially be invalidated. Once expectations change, the prices of coins like SOL and ZEC will face extremely high-frequency volatility. Global stock markets and crypto markets are already in a highly sensitive period, and any policy signals could trigger intense fluctuations.
This is the current situation—both criminal pressure and political games are in play, and it’s hard to say how stable Powell’s position really is. This unexpected variable might be the fuse that ignites a "violent rate cut" rally. All eyes are now on the negotiations between the Federal Reserve and the White House, as the market’s ups and downs could shift accordingly.