The global markets at the start of 2026 have been tumultuous. The power struggle between Trump and Federal Reserve Chair Powell goes far beyond a mere budget dispute; it is a deep-seated contest over monetary policy.

On the surface, it appears to be a disagreement over the renovation funds for the Federal Reserve building. In reality, Trump has been directly eroding the central bank's independence through judicial pressure, bypassing the Fed to implement "Mortgage QE," setting credit card rate caps, and a series of other actions. The division within the Fed has reached its highest point in three years, and policy-making has fallen into deadlock.

Market reactions are the most telling. The US dollar index plummeted sharply to 98.82, marking the worst annual decline since 2017. Nasdaq futures and US stock index futures both mourned, with declines exceeding 0.9%. Over a single week, Japan sold over $20 billion in US Treasuries, and overseas capital is fleeing at an accelerated pace. In contrast, Asian stock markets are rising against the trend, as global risk aversion spreads.

$DUSK $DOLO $ZEC and other cryptocurrencies, due to their independence from traditional financial systems, have become a focus for many investors. Meanwhile, gold prices have broken through the $4,600 mark, reaching new all-time highs, and London gold continues to soar—this is capital voting with its feet for traditional safe-haven assets.

Alarm bells are ringing at the institutional level. BlackRock has urgently reduced its holdings of US Treasuries, and Lagarde has openly stated that the era of "American exceptionalism" is over. JPMorgan warns that the dollar and US debt will remain under pressure. History is repeating itself: when Nixon intervened in the Fed, it triggered a decade-long stagflation crisis. Today, with sluggish US economic growth and rising unemployment, blind rate cuts may only lead to another tragic repeat.

The European Central Bank issued a stern warning: White House actions are eroding the dollar’s dominance. Global capital is rapidly shifting toward gold, diversified safe-haven assets, and even independent cryptocurrencies. How long can dollar hegemony last? This question is now in front of everyone.

What do you think? Can Trump truly take control of the Federal Reserve? Will dollar dominance fall into a long-term decline? How high can gold and safe-haven assets go? Share your views in the comments.