2026-01-16 01:24:32

Recent developments in the financial markets have been truly spectacular. Former President Trump's latest comments on Jerome Powell have attracted widespread attention—initially stating "no plans to dismiss," then implying "it's too early to make a final decision," while also revealing two potential successors. The message is clear: for Powell, this is not a pardon but a "conditional reprieve."

By observing the positions of these two candidates, the clues become evident. One advocates for aggressive rate cuts, believing that AI factors can offset inflationary pressures; the other insists on shrinking the balance sheet before discussing rate cuts, taking a conservative stance. Whoever ultimately takes over, the Federal Reserve's policy space will be severely constrained. Trump's move is straightforward—using personnel pressure to force the Fed to align with rate cut expectations, thereby boosting the stock market and lowering U.S. Treasury yields. This will directly impact liquidity expectations in the cryptocurrency market.

However, it is important to note that the latest Beige Book from the Federal Reserve presents a different picture. Out of the 12 Federal Reserve districts, 8 report moderate economic growth, strong holiday consumption data, and stable unemployment rates. It sounds like everything is improving? But a closer look reveals issues. Almost all regions mention the pressure from tariff costs, with businesses beginning to pass these costs onto consumers through higher prices. The increases in prices for essentials like rent and food still persist, posing real constraints on the realization of rate cut expectations.

Market participants need to be alert to the tension between policy and reality. On one hand, there are rate cut expectations driven by political pressure; on the other, persistent structural inflation pressures. Under this contradictory situation, the volatility of crypto assets may further increase.

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MetadataExplorer

· 01-19 00:55

Powell is being set up; the dream of rate cuts is probably going to shatter. --- Trump's political manipulation is too ruthless, and the Federal Reserve is caught in the middle, which is quite difficult. --- The key is that inflation hasn't truly come down; there is no room for rate cuts at all. --- Crypto rebound? First watch the US Treasury yields, these expectations are all false. --- Aggressive rate cuts to hedge AI inflation? Sounds like a fairy tale. --- Policies clash with reality, volatility is coming, we need to be cautious. --- The Beige Book data is actually hinting at a hard landing; no one wants to admit it. --- Tariff pressure is being passed on through pricing, and that's the real inflation killer.

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DuckFluff

· 01-18 03:44

Huh? Trump is playing psychological warfare—saying he won't fire anyone while hinting at possible replacements. Powell's life is on the line. Political kidnapping of the Federal Reserve—where's the supposed independence? Laughable. Tariffs + inflation double whammy, neither of the two candidates can change the overall trend. Expectations of rate cuts vs. structural inflation—this tension is breaking too violently. Crypto markets should prepare for volatility. Strong consumer spending? Nonsense. Rent and food prices just won't come down, and policies can only be laughed at. Is this a stunt? Trump using personnel pressure to force the Fed to cut rates, but it ended up increasing uncertainty. The Beige Book sounds nice, but actual pressure is all about tariffs—businesses are passing costs onto consumers. The crypto world still depends on whether the Fed will loosen or tighten in the end. The current situation is too chaotic. Policy games are at odds with reality. In the end, it's the ordinary investors who get hurt.

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GasWastingMaximalist

· 01-17 17:10

Trump plays with a "sharp tongue and a kind heart," while Powell is being put on the chopping block. Easing expectations VS structural inflation, how to reconcile these two? It will eventually break. The Beige Book data looks good but is useless; as soon as tariff pressures appear, prices go up, and the common people's wallets are the most honest. The disconnect between political games and the real economy is becoming more obvious. This wave of crypto market might start to stir. Whether Bitcoin can benefit from rate cuts is still uncertain, but volatility will definitely increase.

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MevShadowranger

· 01-16 01:51

Powell is really about to be sidelined this time; Trump's tactics are old-fashioned but effective. Interest rate cut expectations vs. structural inflation—this is the real contradiction. The crypto market should be prepared for volatility. On the surface, the economy appears strong, but it's all under tariff pressure; the market is fooling itself. AI hedging inflation? Ha, just listen. Inflation is not that easy to control. The Federal Reserve being politically hijacked should have been changed long ago, but unfortunately no one cares. The Beige Book data looks good but is fake; tariffs are a hurdle that can't be overcome for now. Liquidity expectations determine everything. We're still waiting to see how the first move unfolds.

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Fren_Not_Food

· 01-16 01:47

Powell is truly being cornered this time; the dream of rate cuts is far off. --- When tariffs increase, prices soar—how can inflation really come down? --- Honestly, political pressure versus actual inflation, with crypto in the middle, just makes it a live target. --- Expectations of rate cuts are shouted every day, but the Beige Book says the economy is still okay—an irreconcilable contradiction. --- AI hedging against inflation? That kind of talk is just too outlandish haha. --- When liquidity expectations fluctuate, crypto prices jump like a high dive—be prepared to cut losses. --- Trump's hand is played very aggressively, but inflation really can't be controlled. --- Food, drink, housing, and transportation are all rising—you're telling me it's moderate growth? LOL. --- Increased volatility means opportunities, but also makes it easier to get cut. --- Political signals and economic realities are at odds—that's the most dangerous time.

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rekt_but_not_broke

· 01-16 01:38

Powell is being roasted on the fire, with interest rate cuts still far off and having to look at Trump's face. What should I do with my BTC? Trump's move is ruthless; a soft knife is more painful than a hard one. Tariffs push prices up, and interest rate cuts are impossible to achieve. Wait, the Beige Book says the economy is improving, so why are living costs still rising? This contradiction is absurd. AI to hedge inflation? Nonsense. Tariffs are the real problem. Now companies are adding markup to goods. Just waiting for volatility to take off. Under this political game, cryptocurrencies should have been stocked up long ago. Whoever takes over the Fed won't change much. There’s still so much money, and so many problems. I bet on a delay in rate cuts. We won't see real interest rate cuts before next year; it's all empty talk.

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GateUser-c799715c

· 01-16 01:38

Powell is really being grilled, with rate cuts still far off, but the stock market still needs to go up, and crypto is also hanging in the balance. Personnel threats are played quite skillfully, but inflationary pressure, to put it plainly, still exists. How long can it fool the market? It's hilarious—saying the economy is improving while secretly passing on costs. Old tricks. Tariffs + rent + food all pushing down, political rate cut expectations are useless against these real pressures. Everyone is waiting to see who will take office. Anyway, no matter who comes in, the Federal Reserve is tied up, and what about our liquidity? Under this kind of policy tension, crypto should be prepared for volatility. This timing is a bit dangerous.

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Degen4Breakfast

· 01-16 01:31

Powell's move is a bit of a tug-of-war, feels like psychological warfare Cutting interest rates? Don't be silly, tariff pressures are still there Volatility is taking off again, another bloodbath coming Trump's move is really clever, politically hijacking the Federal Reserve Promised strong consumption, but rent and food prices are rising? Who believes that The crypto market is about to ride this big show AI hedging inflation? Overthinking it, reality always wins and takes all

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