The US financial system is currently playing out a grand drama involving power and independence. Federal Reserve Chair Jerome Powell has recently become embroiled in a storm of investigations by the Department of Justice, ostensibly related to issues surrounding the renovation of the Federal Reserve building during his testimony before Congress last June, but the true background is far more complex.

According to multiple media reports, House Speaker Kevin McCarthy has publicly stated that if Powell is innocent, the investigation will naturally prove it. Meanwhile, incumbent President Donald Trump’s criticism of Powell continues to intensify — since taking office last year, he has publicly accused him multiple times of being "either incompetent or dishonest," and his job performance has been disappointing.

The core of the conflict centers on interest rate cuts. Trump wants the Federal Reserve to significantly cut interest rates to stimulate the economy and reduce government debt costs, but Powell has repeatedly refused this demand. The Department of Justice has issued a grand jury subpoena to the Fed, threatening criminal charges, while Powell has directly called this an "excuse," claiming the real reason for the investigation is that he refused to follow the White House’s directives on interest rates.

In a firm statement, Powell emphasized: "The Federal Reserve always makes decisions based on economic data, not on the personal preferences of the President." This directly addresses the core issue — the independence of the Federal Reserve’s decision-making authority.

Another key point on the timeline worth noting is that Powell’s term will end this May, and Trump has indicated he will announce a successor in January 2026. This means the choice of successor could become a new focal point in the ongoing political struggle.

From public statements to legal threats, this dispute has escalated from the realm of public opinion to judicial proceedings. Regardless of how it ultimately unfolds, this event is testing a fundamental question: can the independence of the US financial system be maintained under political pressure? Powell concluded his statement by writing: "Holding public office sometimes requires standing firm in the face of threats." The direction of this storm could influence global economic expectations and the volatility of the crypto markets.