Federal Reserve Sued by Its Own: The Financial Game Behind

The news of the Federal Reserve being sued has shaken the market, with the plaintiffs being the American Bankers Association and the Chamber of Commerce. Behind these institutions stand Wall Street giants like Merrill, Goldman Sachs, Morgan Stanley, and other big banks and American businesses. Why do they have the audacity to challenge the world's most authoritative central bank? Let's take a closer look.

The Dilemma of the Federal Reserve

1. Massive Losses: In 2023, the Federal Reserve incurred a loss of $60 billion due to high interest rate policies, raising doubts about its operational capabilities.

2. New Stress Test Regulations: The Federal Reserve plans to implement stricter stress tests for banks, which will raise capital requirements for large banks and directly affect their profitability.

Why are Banks and Businesses Suing?

1. Pressure from Interest Rate Policies: Continuous interest rate hikes have harmed bank profitability, and businesses are suffering due to rising financing costs.

2. Dissatisfaction with Power: The impact of the Federal Reserve's policies on the economy is too great; Wall Street believes its independence has been excessively expanded and needs 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 alleviate the industry's burden.

The Relationship Between Trump and the Federal Reserve

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

Future Outcomes?

Although the lawsuit will bring pressure, the Federal Reserve, as a central bank, still holds the policy lead. However, the united pressure from banks and businesses may force the Federal Reserve to compromise on stress testing and interest rate policies.

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