The balance of power between the Federal Reserve Chair and the President has once again become a focal point. At the heart of this political game is: who can dominate the future direction of monetary policy?

On the surface, the President has appointment and removal authority. But in reality, the Fed has designed a clever system of checks and balances. The terms of the board members are independent of the President—Powell's tenure as a board member will not change until 2028, and this term even exceeds that of the President himself. In other words, even if the Chair position changes, he can still influence policy votes as a board member.

What does this mean? It means that personnel adjustments alone cannot steer the Federal Reserve’s policy wheel. Want to control interest rates or influence the money supply? It’s not that simple.

Historically, the independence of the Federal Reserve was established to prevent short-term political pressures from distorting long-term economic policies. This conflict highlights the resilience of this institutional design. The market reacts sensitively—every hint of policy intervention can instantly impact asset price fluctuations.

For crypto market participants, this power struggle concerns the future interest rate environment. Loose or tight monetary policy will determine the direction of liquidity, thereby affecting the valuation of risk assets. The key is to understand that institutional constraints may be more decisive than individual will.