Last Thursday, U.S. President Trump stood in front of the Federal Reserve's $2.5 billion renovated headquarters, pointing his gun at Fed Chairman Powell before the global media: 'I only want to see one thing—interest rates must come down!' This is not a tone of negotiation, but a command. For months, the White House's artillery fire against Powell's 'wait-and-see' stance has never ceased, and this confrontation has laid a silent power struggle completely bare in the sunlight.
Trump's 'siege plan' against the Federal Reserve is strangling from four directions simultaneously:
Public opinion's noose and public humiliation: Trump's choice to attack at the Fed construction site is no coincidence. He publicly questioned the 'true cost' of the $2.5 billion renovation project, each question a slap in Powell's face. The fierce attacks from White House officials have long become routine, with a clear target: to destroy Powell's public credibility and pave the way for lower interest rates.
Legal encirclement and enforced transparency: Trump's ally, the fund manager-controlled Azoria Capital, has filed a lawsuit in the U.S. District Court for D.C., accusing the Federal Reserve of making closed-door decisions in violation of the Sunshine Act. Their demands are simple and brutal: immediately tear open the doors of the FOMC meetings! This is no ordinary lawsuit, but a dagger thrust straight into the heart of the Federal Reserve.
Congressional battlefield and pulling the rug: In the House of Representatives, Trump's loyal warriors are in action. Representative Anna Paulina Luna demands the Justice Department investigate whether Powell committed perjury; House Speaker Johnson publicly declares his 'disappointment' with Powell and even threatens to amend the foundations of the Federal Reserve—the Federal Reserve Act. When the country's highest legislative body begins to discuss dismembering the central bank, alarms have been raised to the highest level.
Internal collapse and seeds of division: Fed Governor Waller publicly sings a different tune, hinting that he may vote against maintaining interest rates. He firmly believes that 'tariff inflation is temporary' while warning of the risks of a deteriorating labor market. When political forces pry open the cracks within the Federal Reserve, Powell's defenses are already teetering.
Faced with a four-way assault from the White House, the Federal Reserve's resistance is pale and suffocating. Powell repeatedly emphasizes that he will not leave before his term ends, that dismissal is 'not allowed by law', and he is 'honest and transparent' about construction projects. However, these excuses are as thin as paper before Trump's battering ram. The warning from former Kansas City Fed President George is heartbreaking: 'This is a campaign aimed at destroying the Chairman's credibility! When the public begins to doubt this institution, its credibility completely collapses.'
Even more chilling is that Chicago Fed President Goolsbee, in defending Powell, reveals a deep sense of helplessness: 'Hearing people discuss whether the central bank should be independent pains me immensely.' When central bank leaders need to use 'pain' to describe their independent status, the coffin lid of monetary policy has been pried open a crack.
The Trump camp does not hide their ultimate goal: lower interest rates! Lower rates! Again lower rates! They are calculating how much interest a three percentage point reduction could save on the massive national debt, envisioning a prosperous illusion of a booming housing market stimulated by low rates. Trump's rants on social media have torn off the last disguise: 'The council should act, but they lack the courage!' When the president publicly scolds the central bank for its 'lack of courage', monetary policy has become a toy of power.
The warning from former Chairman George is like thunder: 'The moment has come for the Fed to be independent! Lowering interest rates can indeed help the federal government, but look at those countries that have taken this path—history tells us it ends badly.' The collapse of the Argentine peso, the avalanche of the Turkish lira, the degradation of Zimbabwean currency into worthless paper... These bloody lessons have been deliberately forgotten in the political frenzy.
Ironically, as Trump concluded his inspection of the Fed construction site, he wore a smile of confidence: 'I think he will do the right thing; everyone knows what the right thing is.' This 'right thing', does it serve the long-term health of the national economy or succumb to the short-term will of political power?
When the White House's gun is pressed against the back of the Fed's head, Powell's clenched fist is full of cold sweat, while Trump's cold smile has pierced through the night sky of Washington— the final showdown between power and expertise, whose blood will stain the dollar's base?
At this moment, a more lethal question surfaces: when political hands finally grasp the switch of the printing press, how much real weight remains in every dollar in your wallet?