The "Sell America" trade is in full swing, and the Federal Reserve has issued a distress signal

Trump has once again launched a verbal attack on Federal Reserve Chairman Powell, as the "Sell America" trade is in full swing.

Overnight, the dollar, U.S. stocks, and U.S. bonds all fell. Today, the Asian markets continue to decline, with gold breaking through $3,450, and the alarm has not yet been lifted. The market's decline can be seen as a distress signal issued by the Federal Reserve—because the more the market falls, the less likely it is that Powell will be fired.

Regardless of whether Trump has the legal authority to take action against the Federal Reserve, this dispute undermines the foundation of the Federal Reserve's independence and puts the financial markets in jeopardy.

Chicago Fed President Goolsbee (who has voting rights this year) has appeared twice in succession, first warning against undermining the Federal Reserve's independence, and the second time continuing to hint that there will be no rate cuts.

Goolsbee stated on CBS's "Face the Nation" program on Sunday that the independence of monetary policy is crucial; without this independence, inflation rates will rise, economic growth will slow, and the job market will deteriorate.

Goolsbee indicated that the Federal Reserve needs to watch and wait, but if the impact of tariffs does not spread beyond imports that account for 11% of the economy, then the impact may be relatively small.

Goolsbee's frequent remarks are both a powerful counter to Trump's pressure and a necessary repair of market confidence, as well as a reaffirmation of the "data-driven" policy framework.

1. Wall Street's sentiment has shifted from optimistic to a "Sell America" mode, which is an instinctive reaction from the market.

2. Next, people will reassess those assets that are crucial to America's economic dominance. It will no longer be a simple response to "rate cuts" or "tariffs," but a rapid repricing of risks in American dominant assets under the dual pressure of "political intervention" and "institutional risks."

3. If Powell is fired, the initial reaction will be extreme volatility in financial markets, along with what could be imagined as the largest wave of divestment. Not only is the independence of the Federal Reserve obviously under threat, but the prospect of de-dollarization and breaking free from U.S. hegemony is also becoming increasingly realistic.