2026-01-13 00:25:21

The relationship between Federal Reserve Chair Powell and the White House is once again stirring controversy. According to reports, U.S. Treasury Secretary Yellen recently expressed concerns to Trump, stating that the federal investigation targeting Powell has raised market worries. This investigation, initiated by the Washington Attorney’s Office, has attracted attention due to its lack of transparency, and the Treasury Department and White House officials were not notified in advance.

Analysts point out that this incident exposes deep divisions surrounding the independence of the Federal Reserve. Originally, the public expected Powell to naturally step down during a change of administration, but the investigation has instead reinforced his firm stance. Yellen privately indicated that such confrontational actions make negotiations more complicated—Powell is unlikely to voluntarily relinquish his position.

Deeper issues have also emerged: Can the Federal Reserve’s policy-making remain independent of political pressure? When power centers are divided, how much volatility will financial markets endure? Such policy uncertainties could influence investor decisions and, consequently, asset pricing.

From a crypto market perspective, policy turmoil in traditional finance often indirectly impacts digital assets through changes in liquidity and risk appetite. In the context of uncertain Federal Reserve policy prospects, market participants need to closely monitor official statements and economic data to anticipate policy directions.

What are your thoughts on this controversy? Is the independence of the Federal Reserve truly under threat?

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PensionDestroyer

· 01-15 21:09

Now Powell is determined to clash with the White House; the investigation has instead angered him. Interesting. The more they are investigated, the tougher they become. Isn't this reverse incentive? Truly remarkable. Is this all there is to the Federal Reserve's independence? Power struggles just get chaotic. In the crypto world, we have to watch the Fed's moves before acting. When liquidity tightens, even BTC has to tremble. The White House Treasury Secretary is panicking himself, indicating the problem is much more serious than it appears. If the Federal Reserve is truly politicized, our pension plans will be even more at risk. Powell being tough actually benefits the market; I just worry he might compromise. Political interference in the central bank... Now, all risk assets are going to be dragged along in the chaos. Basically, it's a power game. In the end, retail investors and crypto players are the ones who suffer.

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QuietlyStaking

· 01-15 19:11

Uh... so Powell is determined to go against the trend? It seems like this move by the White House has actually put itself in a passive position.

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SnapshotLaborer

· 01-13 11:09

Damn, they're doing this again? Powell is really tough, the investigation actually fuels the fighting spirit, hilarious. The crypto circle is just watching the traditional finance internal struggles; the bigger the turmoil, the more volatile the coin prices. Those who can stay calm will make money. Honestly, the independence of the Federal Reserve has been an issue for a long time, and this time it's just surface-level... The White House wants a compliant chairman, but Powell refuses, and everyone ends up happy. Under this political uncertainty, where does the capital flow? It still depends on the performance of BTC and Ethereum.

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OffchainWinner

· 01-13 00:55

Powell is really a tough nut to crack; the more pressure, the harder he gets. --- What’s going on with this investigation? Not only is it opaque, but they didn’t even give a heads-up in advance? Washington folks are playing tricks. --- The crypto world has to follow the Fed’s lead again, so annoying. --- Basically, it’s a power struggle. The Federal Reserve’s independence has long been a joke. --- Policy uncertainty is the worst; I don’t even know how to position my holdings anymore. --- Besent is quite capable of causing trouble. This move really angered Powell and backfired, indeed. --- Federal Reserve independence? Haha, just a game for the wealthy. --- Liquidity changes directly hit my wallet; I can feel it.

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DAOplomacy

· 01-13 00:47

honestly the whole "fed independence" framing here is kinda doing heavy lifting... like, has it ever really been independent or are we just pretending the incentive structures don't exist? powell holding firm is smart optics tbh, but the real game theory gets interesting when you map out stakeholder alignment across treasury, white house, and markets. sub-optimal process design if you ask me.

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ZeroRushCaptain

· 01-13 00:32

Haha, now it's good. Washington has started infighting again... We in the crypto world love watching this kind of drama. Powell's iron-fisted refusal to step down, and the White House trying to show off again—this kind of uncertainty is basically my reverse indicator— the more chaotic it gets, the clearer I am on how to lose money next. Honestly, when policy outlooks are uncertain, it's like giving the retail investors a knife—liquidity shocks wipe out retail traders completely. I am a living example of that. Federal Reserve independence? Uh... independent enough to be called "daddy" by Trump on the table, to be honest, the power struggle has never stopped. Just wait, this time the crypto market will get cut in half again along with traditional finance. I’ve already started calculating how much more I’ll lose. Whenever there’s movement in the traditional financial system, we suffer—it's a law... I bet five bucks there will be a series of continuous crashes next week.

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