#TrumpPressuresPowell#

The independence of the Federal Reserve is a cornerstone of the US financial system. If this independence collapses, it could shake global confidence in the US dollar and Treasury bonds, potentially triggering a large-scale sell-off of both.

Trump's potential removal of Powell might lead to a temporary drop in the yield on 2-year US Treasury bonds due to shifting market expectations. However, for long-term bonds, the market is likely to demand a higher risk premium, pushing 10-year yields up unless trust is quickly restored.

Restoring market confidence after such a move would be extremely difficult. Similar to how the weaponization of the dollar against Russia triggered cracks in global trust, this situation could accelerate the trend of de-dollarization. Since 2022, many countries have increased their gold reserves and gold prices have surged.

If Trump aims to lower interest rates by removing Powell, the cost could be severe. It may come at the expense of the dollar's credibility and the Fed's independence, threatening the stability of the entire US financial system.

Impact on the Crypto Market

Price Volatility. As confidence in the dollar declines, cryptocurrencies could experience a surge, especially Bitcoin. However, this may also lead to sharp price swings and increased risk for investors.

Market Sentiment. Investors might view crypto as a safe haven amid uncertainty, increasing inflows. At the same time, others may pull back due to fear of extreme volatility.

Policy Risk. A change in the Fed leadership could trigger global financial market reactions. Regulators might take a more cautious or even stricter approach toward crypto, potentially slowing down its development.
#特朗普施压鲍威尔#