The intense confrontation between the White House and the financial sector is escalating. Recently, the Trump administration clashed with Wall Street executives over the independence of the Federal Reserve, marking the beginning of a power struggle that will influence the future direction of the federal funds rate.

The core focus centers on two areas: first, a judicial investigation into the current Fed Chair—related to concerns over institutional operating costs overruns and congressional testimony; second, a radical draft bill proposing credit card interest rate controls, aiming to cap consumer credit rates at 10%, directly targeting the current market rate of around 28%.

Warnings from financial institutions have emerged: interest rate controls could squeeze credit supply, weaken consumer spending stimulation, and pressure market liquidity. However, these arguments seem unable to shake the White House's resolve—nomination of a new chair is expected to commence within weeks, and the regulatory "Credit Card Competition Act" is also progressing simultaneously.

This tug-of-war between "livelihood policies and financial stability" reflects deep disagreements over the future macroeconomic environment. Rising uncertainty around the federal funds rate policy will trigger chain reactions affecting credit market pricing and risk asset trends—including high-risk sectors like cryptocurrencies, which are often most sensitive to liquidity expectations.

From Wall Street to major financial institutions, everyone is betting on the final outcome of this political-business standoff. In the short term, market volatility may intensify.