The Federal Reserve was sued: Trump's backstage game, the winner is about to be revealed
Recently, the global financial hegemon, the Federal Reserve, was sued, and the plaintiffs turned out to be its own "sons" - the American Bankers Association and the American Business Association, behind which stood the core interest groups of Wall Street, including Merrill Lynch, Goldman Sachs, Morgan and other big banks and American business giants. Behind this lawsuit, there is a complex power game.
1. The Fed's predicament this year
• A huge loss of $60 billion: Due to interest rate policy and balance sheet pressure, the Federal Reserve suffered heavy losses this year, and the fiscal deficit has increased, which has aroused dissatisfaction on Wall Street.
• Authority challenged: The Federal Reserve has long controlled US financial policies, but its independence and effectiveness have begun to be questioned.
2. Why did Wall Street dare to take action?
• Interests damaged: The high interest rate policy has compressed the profit space of banks, and at the same time has impacted the financing costs of the business community, directly threatening the core interests of Wall Street.
• Political game: The interest groups behind Trump have long been in opposition to the Federal Reserve. This lawsuit may be one of the strategies of the Trump camp to put pressure on the Federal Reserve.
3. Key points of victory or defeat
• Policy direction: If Wall Street wins the lawsuit, it may force the Federal Reserve to enter a rate cut cycle faster, and market liquidity will increase.
• Market impact: This lawsuit may become a catalyst for short-term fluctuations in the financial market, especially the impact on the US dollar, US stocks and crypto markets is worth paying attention to.
Summary:
The Federal Reserve’s lawsuit has revealed the deep contradictions between Wall Street and the US central bank. This is not only an economic game, but also a political contest. Investors need to pay close attention to the progress of the lawsuit and its potential impact on the market, especially the changes in interest rate policy and the trend of the US dollar.