Recent developments in U.S. politics have been frequent, with the Trump administration launching an investigation into Federal Reserve Chair Jerome Powell. The superficial reason cited is transparency in financial funds, but the underlying logic behind this controversy is even more intriguing.

Powell himself responded swiftly, stating that the investigation has nothing to do with testimony or renovations, and that the real issue is that he "did not act according to the president's wishes." In essence, it is a clash between the independence of the Federal Reserve and the monetary policy demands of the ruling authorities—Trump wants to cut interest rates to stimulate the economy, while Powell insists on the central bank's prudent stance. The two sides have long been at odds.

This is not merely personnel adjustment. Trump's true goal is to send a signal to all central bank officials: those who do not cooperate with my policies will bear the consequences. More notably, he has publicly indicated an intention to nominate a specific candidate, which suggests that the Federal Reserve may face a reshaping of power.

For cryptocurrency market participants, this change could present opportunities. Trump has consistently supported the development of digital assets. If his influence can impact Fed decision-making, the ongoing environment of low interest rates in the short term will ensure ample market liquidity, making it easier for risk assets, including Bitcoin, to attract funding. In the long run, as the certainty of U.S. dollar policies diminishes, Bitcoin’s appeal as an alternative asset will significantly increase.

The interest rates controlled by the Fed are like the tap of the economy. Cutting rates means monetary easing, lowering the cost of funds, and both institutions and retail investors are more willing to invest in high-risk, high-reward sectors; raising rates has the opposite effect, causing hot money to retreat rapidly, and the entire risk market will feel the chill.

The timing is also worth noting. The 2026 U.S. midterm elections are approaching, and economic performance directly affects votes. This is a political chip that Trump is using to seek re-election. Lowering rates can boost the stock market and stimulate consumption, making his political achievements look impressive. Therefore, this power struggle over the Federal Reserve is essentially a preparation for the upcoming elections. On the surface, it is a policy game; in reality, it targets political interests.

This game has only just begun, and there are many uncertainties ahead.