Trump and the Federal Reserve are heading toward a serious showdown, and the stakes are higher than they’ve been in years. Kashkari recently hinted that this isn’t just political noise — it’s a genuine struggle over who shapes the direction of the U.S. economy.
Why does this matter?
If the Fed starts bending to political demands, global markets could feel the impact fast. Core inflation is still sitting near 3%, and tension between the White House and the Fed has reportedly jumped sharply. That could mean rate cuts take much longer than many investors are hoping for.
Here are a few key points worth considering:
1. The debate over the Fed’s independence is ramping up as the search for a new Fed chair in 2025 begins. Political pressure is putting the credibility of the dollar in the spotlight.
2. Whenever politics interfere with monetary policy, markets tend to swing harder. History shows that volatility can spike significantly under these conditions.
3. When trust in traditional economic tools fades, more money tends to move toward systems that offer transparency and community-driven decision-making, including parts of the crypto world.
As we move deeper into the Year of the Dragon, plenty of attention is going toward the so-called “Elon Musk puppies,” symbols of creativity and strong community sentiment. With the possibility of weakening confidence in traditional currency structures in 2026, sticking with communities that operate on shared consensus could be a way to protect and grow wealth.
What’s your take?
Should the Fed maintain its independence at all costs, or is it time for a new direction?
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