Recently, the global central banking circle has been a bit unsettled. The U.S. Department of Justice issued a grand jury subpoena to the Federal Reserve and even threatened criminal charges, which is extremely rare in history. Powell remained unshaken, publicly stating that this is the result of ongoing government pressure and threats. He emphasized, "The threat of criminal charges essentially stems from the Federal Reserve setting interest rates based on the best judgment of public interest, rather than succumbing to the President's preferences."

This scene has made central banks around the world uneasy. According to sources, officials from multiple countries' central banks are in close consultation, preparing to jointly speak out under the name of the Bank for International Settlements to express support for the Fed Chair. This joint statement is expected to be open for signature by all central banks and could be released as early as Tuesday. Countries need some time to align their wording, mainly due to time zone differences.

Why is everyone so concerned? Frankly, this touches on the fundamental issue of central bank independence. The Federal Reserve and the US dollar are two pillars of the global financial system. Once central banks' policy decisions are influenced by political pressure rather than economic data, global financial markets will shake accordingly. This is not just about the US; it’s a major event for all countries relying on the dollar and for the cryptocurrency markets.

Since the testimony to Congress in June last year regarding the Federal Reserve headquarters renovation project, this series of events has been escalating. It has now evolved into a judicial threat, a practice unheard of in modern central banking systems. In the long run, if political interference becomes the norm, monetary policy formulation will deviate from inflation and economic growth targets, posing a significant threat to the stability of the entire financial ecosystem.