Recently, the financial world has exploded with news. Donald Trump officially threatened to sue Federal Reserve Chair Jerome Powell, ostensibly over the financial issues related to the "$600 million building renovation," but smart observers see through it immediately—this is not about financial auditing at all, but a blatant political pressure campaign.

At its core, Trump is targeting the most fundamental aspect of the Federal Reserve's independence: policy autonomy. Once this line is crossed, what could happen next?

Understanding this chess game is simple. The first step is to exert political pressure on the Fed through litigation. The second, more critical step—by May 2026, Powell’s term will expire, giving the White House an excellent opportunity to replace him with a "loyal" central bank chair. The third and most lethal step is to control interest rate policies, making rate cuts entirely serve short-term political needs, and delaying inflation issues for later.

The dilemma facing global markets is deeply unsettling. Either the Fed compromises, turning rate cuts into a political tool, which could reignite inflation, shake the dollar’s credibility, and cause unprecedented volatility in global financial markets. Or, the Fed resists fiercely, leading to an increasingly intense game of chess between the White House and the central bank, with policy expectations becoming completely chaotic, and stocks, bonds, and forex markets resembling roller coasters every day.

Honestly, once this "trust crack" is torn open, the most immediate consequence will be a large amount of capital seeking alternatives. Non-sovereign assets like gold and Bitcoin have always been winners in such moments. History has provided many such opportunity windows, and this time might be one of them.

What’s your take? Can the Fed’s independence be maintained? Is it time to reconsider your asset allocation?