2026-01-20 07:00:15

The US Supreme Court is set to rule on a pivotal question: can a sitting president remove Federal Reserve governors without restriction, or does the central bank maintain the independence that Congress designed into its structure?

This case carries major implications for monetary policy. If the president gains broader firing power over Fed officials, it could undermine the Fed's ability to operate free from political pressure—something that's been foundational to its credibility for decades.

For the crypto and broader financial markets, Fed independence matters enormously. An insulated central bank can make hard calls on interest rates and inflation control without worrying about political backlash. That kind of autonomy has historically anchored investor confidence in policy consistency.

On the flip side, some argue the president should have more oversight of the Fed's governance. Either way, the ruling could reshape how monetary policy gets made going forward—and that trickles down to everything from bond yields to crypto valuations.

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.

16 Likes

Reward
16
5
Repost
Share

Comment

0/400

BearMarketHustler

· 14h ago

Back at it with this again? If the President could freely fire the Fed officials, wouldn’t everything just go haywire... --- Basically, it’s a matter of checks and balances. If the Fed’s independence is compromised, the crypto market won’t have it easy either. --- In the end, this will definitely come down to political compromise. I bet five cents they won’t really give the President such sweeping power. --- Damn, if the Fed really becomes politicized, what about my holdings... --- Wait, does this mean policies will become more arbitrary? I need to reconsider my positions. --- Honestly, Fed independence is crucial for us. Without this bottom line, crypto prices would go even crazier. --- Another ruling that can influence the market... Feels like every court decision can shake the market. --- So ultimately, it’s politicians wanting more control. --- If this really passes, all asset valuation logic will have to be recalculated.

View OriginalReply0

0xSleepDeprived

· 01-20 07:28

NGL, this is really going to blow up. If the president can dismiss Federal Reserve officials at will... will the crypto world still survive?

View OriginalReply0

BearMarketNoodler

· 01-20 07:28

The independence of the Fed? Honestly, it's just a power game. Don't be fooled. --- If this ruling really comes down, the crypto market will have to start from scratch, but history has shown us it's not that simple. --- Political interference in the Fed? Ha, then just wait and see inflation spiral out of control. --- How much the crypto prices can fall depends on whether the market believes the Fed can still stand firm. I think it's uncertain. --- Instead of worrying about this, it's better to look at what the inflation data is telling us. --- Is the Fed being sidelined? Not really, but we do need to watch out for political pressure. --- Once monetary policy becomes a political tool, it’s hard to control the consequences. --- Wake up. No matter what the ruling is, the market will ultimately have to digest it on its own.

View OriginalReply0

SatoshiNotNakamoto

· 01-20 07:26

Coming back with this again? The president wants to take control of the Federal Reserve.

View OriginalReply0

GasFeePhobia

· 01-20 07:24

Coming back with this again? The president wants to directly control the Federal Reserve, isn't that just wanting to print money at will...

View OriginalReply0