Trump is currently fully committed to shifting the tariff conflict against Powell and has already launched an attack on Powell. Knowing that Trump is a highly uncertain person, I thought before he took office that he would bring a high degree of uncertainty to the liquidity-concentrated U.S. stock market, and now it seems that Trump's actions have far exceeded his first term. To say he is playing chess, he started paying attention to the U.S. trade deficit in the 1980s; to say he is shrewd, he wants to bring the U.S. back to the industrial power of the late 18th and early 19th centuries by offsetting personal income taxes with tariffs, which is somewhat contrary to the natural order. In contrast, Wall Street institutions have warned of the long-term decline of the dollar's dominant position, particularly BlackRock's CEO believes that the dollar cannot remain the dominant reserve currency for long, regardless of whether the U.S. and China reconcile. U.S.-based capital and companies will face significant business adjustments. Trump's cabinet, including the Treasury Secretary and senior advisors, presents two different lines of thought. Bessen warned that Trump's dismissal of Powell would trigger market turmoil, with the core issue being the independence of the Federal Reserve extending the strong triangular structure of the dollar, U.S. debt, and reserve currency.
I believe that the internal contradictions within the U.S. far exceed external contradictions. Recently, Trump initiated a crackdown on Wall Street and Silicon Valley, and now he wants to reform the Federal Reserve. Currently, any financial market is political economy; Trump's influence on the market is becoming increasingly frequent. It is no longer about engaging in politics within the financial market but rather politicizing the financial market itself.
The good news is that Powell has for the first time supported accelerating the legislation and issuance of stablecoins. After stablecoin legislation, the cryptocurrency space should see more giants and institutions enter, and the application of cryptocurrencies will receive a tremendous expansion. Many coins should soon experience a revival, perhaps within two to three weeks, or maybe it will start as early as next week.