Risks to Federal Reserve independence? Central banks under the control of the Treasury may struggle to respond to the next financial crisis

【Blockchain Rhythm】Recently, a market analyst proposed an interesting perspective: the decision-making power of the US Treasury Secretary Bessent regarding the Federal Reserve Chair election essentially means that this Treasury Secretary will hold the real power over the Federal Reserve.

How to interpret this? The criteria for selecting the new Federal Reserve Chair have already been clearly defined—regulatory policies should align with the White House, interest rates should be significantly lowered (they believe that tariffs have exaggerated inflation risks), and a key point is that the issuance and management of government debt should shift from the Federal Reserve to the Treasury Department.

What does this resemble? It’s like an independently operating central bank gradually being engulfed by political forces.

The question is, what will happen when the next economic or financial crisis truly arrives? A weakened Federal Reserve, under the concentration of power in the government, can it still maintain stability? The central bank’s ability to control inflation and maintain the credit system fundamentally relies on public trust and independent decision-making. These things cannot be provided by the current government.

What does this mean for the crypto market? It indicates that uncertainty in the traditional financial system is rising, and this increased uncertainty often boosts interest in alternative assets.