The recent political drama in the US has been full of twists and turns. After the December inflation data was released, Trump directly pressured Federal Reserve Chair Powell to cut interest rates significantly. What seems like a simple political struggle actually has each step influencing the funding environment of the crypto market.

Let's start with the surface data. The US December inflation rate declined, which is normally a reference signal for the Fed's policy assessment. But Trump immediately came out, praising his tariff policies for stimulating the economy on one hand, and on the other hand, pressuring Powell to accelerate rate cuts. Behind this high-level game, there is a direct impact on market liquidity.

First angle: What is Trump's true motivation for pushing rate cuts? On the surface, it is to maintain economic growth, but in reality, it involves several practical issues. The US national debt has already accumulated to 37.7 trillion, and at current interest rates, annual interest payments exceed @E5@1.3 trillion. If interest rates drop by 1 percentage point, the government's annual interest costs could be saved by nearly 400 billion. The attractiveness of this calculation is self-evident. Meanwhile, rate cuts usually boost valuations in capital markets, which also benefits Trump's political leverage.

Second angle: The current state of the Fed's independence. On the surface, Powell maintains a tough stance, claiming to base policy decisions on data, but in practice, the influence of political pressure is gradually becoming apparent. The central bank's independence is becoming relatively fragile in the complex political ecosystem.

What does this mean for the crypto market? A rate cut cycle typically increases systemic liquidity, which historically tends to push up the valuation of risk assets—including digital assets like Bitcoin and Ethereum. Conversely, if the Fed insists on a high-interest-rate stance, liquidity will be under pressure, and the crypto market could also face downward pressure.

The upcoming policy direction is worth continuous attention.