The Federal Reserve Sued by Its Own Progeny: The Financial Game Behind the Scenes

The news of the Federal Reserve being sued has shaken the market, and the plaintiffs are surprisingly the American Bankers Association and the Chamber of Commerce. Behind these institutions stand Wall Street giants like Merrill, Goldman Sachs, Morgan Stanley, and other large banks, along with the American business community. Why do they have the audacity to challenge this globally authoritative central bank? Let's delve into it.

The Dilemma of the Federal Reserve

1. Massive Losses: In 2023, the Federal Reserve incurred a $60 billion loss due to its high-interest rate policy, raising doubts about its operational capability in the market.

2. New Stress Testing Regulations: The Federal Reserve plans to implement stricter stress tests for banks, which will increase capital requirements for large banks, directly impacting their profitability.

Why Are Banks and the Business Community Suing?

1. Pressure from Interest Rate Policies: Continuous rate hikes have damaged banks' profitability, and the business community is also suffering due to rising financing costs.

2. Dissatisfaction with Power: The Federal Reserve's policies have a disproportionate impact on the economy, and Wall Street believes its independence has expanded excessively, needing to be reined in.

3. Seeking Policy Compromise: Suing the Federal Reserve is not aimed at truly bringing it down but rather to exert pressure for policy adjustments to lighten the industry's burden.

The Relationship Between Trump and the Federal Reserve

Trump's relationship with the Federal Reserve has always been tense; he has publicly criticized the Fed's interest rate policies multiple times. The current lawsuit may further ignite the confrontation between him and the Federal Reserve.

Future Outcomes?

Although the lawsuit will bring pressure, the Federal Reserve, as the central bank, still maintains policy dominance. However, the united pressure from banks and the business community could force the Federal Reserve to compromise on stress testing and interest rate policies.

Conclusion: This incident represents not only the power struggle between the Federal Reserve and Wall Street but also a microcosm of the internal interests distribution within the financial system. The future trends are worth ongoing attention!