A major political and financial confrontation is unfolding in the US, and it could impact stocks, crypto, gold, silver, and global markets.
⚖️ What’s Happening?
Former President Donald Trump and Federal Reserve Chair Jerome Powell have been in open conflict.
Trump has consistently pushed for interest rate cuts
His belief: when rates are cut, liquidity increases
More liquidity usually means stocks, crypto, and commodities outperform
Trump’s past presidencies are known for strong market performance, and he wants to repeat that playbook.
🏦 Powell Refuses to Bow Down
Jerome Powell has refused political pressure, repeatedly stating:
“The Federal Reserve is an independent institution.”
This resistance is unprecedented — no US President has ever pressured the Fed this openly.
🔍 The Investigation Twist (June 2025)
A new angle changed everything:
The 90-year-old Federal Reserve building underwent renovation
Cost reportedly reached $25 billion
An investigation was launched into misuse of public funds
Recently, the US Department of Justice upgraded this probe into a criminal investigation.
🎥 Powell’s Response
Powell broke his silence and released a public statement saying:
The criminal investigation is politically motivated
It began because he refused to cut rates under pressure
Rate cuts should happen only when it benefits the American public
This marks the first time a Fed Chair openly accused political interference.
🌍 Why Markets Are Nervous
Markets are now pricing in a dangerous possibility:
What if the Federal Reserve is no longer independent?
If the world’s most powerful central bank loses independence:
US financial credibility weakens
Global uncertainty rises
Long-term economic stability is questioned
📉 Market Implications
Rate cuts under pressure → higher inflation risk
Extreme scenario → hyperinflation fears
Investors typically move toward safe and scarce assets
🟡 Assets That May Benefit from This Uncertainty
Gold
Silver
Bitcoin
Historically, these assets outperform during monetary and political instability.
🧠 Final Thought
Short-term, uncertainty can boost hard assets.
Long-term, political control over monetary policy is dangerous for the global financial system.
This is not just US news — it affects the entire world.
📌 Stay informed. Volatility is rising.
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