🔥New Chess Game: When the Federal Reserve Meets Trump
The Washington Post reveals that the Federal Reserve chose "tactical restraint" this spring, planning to avoid direct confrontation with Trump by reducing the size of its institutions, thereby safeguarding its most core interest rate decision-making power. The purpose of this tactical retreat is to "trade space for time."
At the same time, the demands from Trump have become unprecedentedly clear and strong. Treasury Secretary Mnuchin supports re-examining the 2% inflation target, while White House advisor Hassett criticizes the Federal Reserve's rate cuts as "far behind." President Trump has even drawn a red line for the next Federal Reserve chair: they must support his policy direction.
The game between Trump and the Federal Reserve has, along with economic data, become a key variable influencing future monetary policy. The independence of the Federal Reserve is being conducted in a more pragmatic and flexible way.
Currently, Trump is fully pushing for a longer-term, more accommodative liquidity environment. For the crypto market, this is undoubtedly a positive and far-reaching long-term macro backdrop.
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