Federal Reserve Chairman Powell responds to political threats: interest rate decisions should be based on evidence rather than political will

【BlockBeats】On January 12th, a major news broke. Federal Reserve Chair Jerome Powell is facing a criminal investigation, but his response was straightforward—The Federal Reserve sets interest rate policies based on economic data and professional judgment, not political considerations.

The logic behind this is quite clear: if central bank decisions start succumbing to political pressure and threats, it’s game over. Powell emphasized that he has always insisted on performing his duties independently and impartially, which is the core value of the Federal Reserve.

He also pointed out that the criminal charges against the current US government’s Federal Reserve Chair are unprecedented in history. In plain terms, this is not just a threat to Powell personally but a broad challenge to the independence of the Federal Reserve.

Why is this so important to the crypto world? Because the Federal Reserve’s interest rate policies directly impact global liquidity. Once central bank decisions are no longer evidence-based but are instead hijacked by politics, the market loses predictability. From Bitcoin to other cryptocurrencies, everything depends on the Fed’s stance—political interference means increased policy uncertainty, which is bad news for any financial market.