Federal Reserve Chairman Powell's Speech Approaches, Market Focuses on Regulatory Attitude and Potential Political Pressure

On the evening of July 22, Federal Reserve Chairman Powell will deliver a speech at a bank regulatory meeting, drawing significant market attention. The context of this speech is unique, as former President Trump has recently questioned the transparency of the Federal Reserve's funding use in the Washington headquarters renovation project, directly targeting Powell himself, attempting to exert political pressure through issues of "fiscal discipline" and "credibility."

Although the market generally expects Powell not to respond directly to Trump, he may take this opportunity to reaffirm the Federal Reserve's independence in regulation and monetary policy. This could have potential implications for the current sentiment in the cryptocurrency market and the financial market. If Powell exhibits a tough stance, reaffirming that "the Federal Reserve is not subject to political interference," it may stabilize market confidence; conversely, if he hints at compromise or softens his stance, the market may interpret it as an increase in policy uncertainty.

Regarding bank regulatory issues, Powell may emphasize the following points:

1. Prudent adjustments to bank capital requirements: addressing market concerns about overly strict new capital requirements;

2. Increasing regulatory transparency and public communication mechanisms;

3. Stabilizing the financial system and avoiding liquidity risks caused by excessive regulation.

In summary, tonight's speech may not trigger significant market volatility, but if the remarks exceed expectations or involve statements about political interference or regulatory loosening, it could have a short-term impact on the stock market, the dollar index, the bond market, and cryptocurrency assets, so investors should remain vigilant.$ETH