Federal Reserve's Kashkari speaks: Trump's measures touch the core of monetary policy

Federal Reserve Minneapolis President Kashkari has expressed that U.S. President Trump’s actions “pertain to monetary policy.” This is yet another direct response from the Fed to Trump’s policies and also reflects the current stance of the Federal Reserve under political pressure. More notably, Kashkari is scheduled to speak tonight (January 15th at 01:00), and the market may gain additional details.

The Deeper Implications of Kashkari’s Viewpoint

Kashkari’s statement appears calm on the surface, but the signals conveyed are very clear: Trump’s actions have already involved the core functions of the Federal Reserve—formulating and implementing monetary policy. He specifically mentioned that Powell “accurately” explained the matter, implying that the Fed Chair has responded to and clarified Trump’s actions.

This manner of expression reflects the Fed’s cautious attitude. On one hand, Kashkari acknowledges the existence and impact of Trump’s actions; on the other hand, by emphasizing that it involves monetary policy, he is defending the Fed’s independence.

Intersection of Trump and Federal Reserve Policies

Since Trump took office, discussions around the Fed have been a focal point. Key aspects include:

• Interest rate policy: Trump has repeatedly expressed dissatisfaction with high rates
• Dollar policy: Tariff policies may affect exchange rates and dollar strength
• Quantitative easing: Views on the size of the Fed’s balance sheet
• Personnel appointments: Evaluations of the Fed Chair and members

Kashkari’s remarks indicate that these issues have moved from public discourse to official policy discussion levels.

Indirect Impact on the Crypto Market

For the crypto market, this development has several implications:

The independence of Fed policy under political pressure could influence future interest rate decisions. Interest rate policies directly affect the attractiveness of risk assets, and cryptocurrencies, as high-risk assets, are extremely sensitive to rate changes.

If the Fed is forced to alter its policy direction under political pressure, it could lead to a reassessment of the Fed’s credibility, thereby impacting asset pricing.

Upcoming Speech to Watch

According to the schedule, Kashkari will speak tonight at 01:00. This speech may cover:

• A more detailed explanation of Trump’s actions
• Defense of Fed independence
• Hints about future monetary policy directions
• Economic outlook assessment

This will be an important window into understanding the Fed’s current stance.

Summary

Kashkari’s remarks, while mild in tone, are essentially a defense of the Fed’s independence. The interaction between Trump and the Fed’s policies has shifted from behind-the-scenes pressure to an open policy discussion. For the crypto market, the stability and independence of Fed policy are crucial, as they directly influence interest rate trends and risk asset valuations. Moving forward, close attention should be paid to Kashkari’s speech content and the Fed’s actual policy choices under political pressure.