Recently, debates over the independence of the Federal Reserve have been heated and intense. Trump has frequently voiced doubts about the Fed's independent operation, even hinting at personnel adjustments after Powell's term ends in May. Although he stated that there are no specific plans to dismiss him at the moment, the phrase "it's too early to draw conclusions" clearly leaves a lot of suspense.

This move immediately raised alarms in the global financial community. Did you know? Central banks around the world have rarely united to support Powell, emphasizing how important Fed independence is. Former European Central Bank President Trichet was blunt—this is overturning nearly 50 years of global consensus, essentially turning the Fed into a "subordinate tool of the executive branch." Finland's central bank governor Rehn also issued a warning: the credibility of the Fed is the foundation of global price stability. Once damaged, global inflation could structurally rise, with unimaginable consequences.

To put it simply, the real risks are here:

**First, the potential collapse of the US dollar's credibility.** If the Fed's independence is compromised, international markets' trust in the dollar will waver, and long-term depreciation pressures will intensify. Remember, the dollar is the benchmark of the global financial system—if it encounters problems, the entire world will face turbulence.

**Second, global inflation could spiral out of control.** Once monetary policy becomes a political tool rather than a professional decision, the entire mechanism for price stability will be disrupted. This would be a nightmare for the global economy.

**Third, the debt chain could break.** Currently, US debt is at an alarmingly high level, and the entire financial system relies on a low-interest-rate environment to function normally. If the Fed's independence is lost, the risk of a sudden break in the financing chain will greatly increase.

On the other hand, Trump claims he understands the economy better than Powell and is even scouting for a successor, with names like former official Wosh and former advisor Hasset on the list. Citibank's analysis also points out that this populist threat may not be limited to the US; central banks in Europe, the UK, and elsewhere could face similar pressures.

The current situation is quite strange—US debt is at a historic high, yet markets remain surprisingly calm. Once the Fed's independence is truly weakened, this calm could be shattered in an instant, and the impact on the global financial order could be severe. Honestly, no one can predict how serious it might get. So, this is not just a domestic issue for the US; it is shaking the very foundation of the dollar's credibility and could trigger a series of chain reactions in global financial risks.