Two senior ministers were exposed to have worked together to "defuse the bomb" and successfully prevented Trump from firing Powell.

The latest statement by President Trump of the United States indicates that he "never intended" to dismiss Federal Reserve Chairman Powell. Trump accuses the claims as media hype and simply hopes that Powell will take more proactive action on interest rate issues. It is evident that Trump's attitude has changed compared to his previous threats towards Powell. Last Thursday, Trump posted on social media accusing Powell of "playing politics" and saying it would be best for him to resign sooner rather than later. He also stated, "If I wanted him out, believe me, he'd be gone fast. I'm not happy with him." Last Friday, Kevin Hassett, Trump's senior economic advisor and chairman of the National Economic Council, told the media when asked about the possibility of firing Powell, "The President and his team will continue to study this issue." According to media reports, some senior officials within the White House have been serious in considering the proposal to dismiss Powell. They added that White House lawyers have privately examined legal options, including whether Powell can be dismissed for "just cause." It wasn't until early this week that Trump told his top aides that he would not attempt to remove Powell, putting an end to these discussions. Insiders stated that Trump's latest decision was made after being advised by Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross. They advised Trump that removing Powell could trigger significant market turmoil and legal disputes. One insider added that even if Powell were to be replaced, Trump would have difficulty achieving actual changes in interest rates, as other members of the Federal Reserve Board may adopt similar monetary policies to Powell. When Trump first entered the White House, he vowed to reshape the global economy with a tough approach. However, as financial markets reacted negatively to his aggressive trade and economic actions, Trump continued to retreat from threats and make concessions. Media analysis suggests that despite Trump's claims of indifference to market fluctuations, he and his aides do closely monitor Wall Street and big businesses' reactions to their agenda. A senior official stated that Trump continues to closely monitor market dynamics. It is worth noting that Trump promoted Federal Reserve Governor Michelle Bowman to serve as the new Vice Chair for Supervision. However, even Bowman, favored by Trump, has repeatedly warned against early or rapid interest rate cuts by the Federal Reserve. For a long time, the Federal Reserve's independence has been considered sacrosanct by Wall Street bond investors because if foreign investors fear government interference in the Fed's monetary policy, they may decrease purchases of U.S. bonds, leading to rising interest rates. Generally, the independence of the Federal Reserve helps maintain economic stability and mitigate economic risks caused by political interference. If the Federal Reserve succumbs to political pressure, it may lead to short-sighted monetary policy and sometimes an inability to act promptly, exacerbating economic and financial market volatility. Additionally, as the most important central bank globally, the Federal Reserve's independence is crucial not only for the U.S. domestic economy but also affects global financial markets and other countries' economic policies. Independence helps sustain the U.S. dollar's global reserve currency status, ensuring U.S. dominance in international economic affairs. Chief Economist of Access/Macro, Tim Mahedy, wrote in a client brief, "If the Federal Reserve Chairman is forcibly removed, the market's reaction will be 'apocalyptic.' The pain will be swift and severe, ultimately leading to the President immediately reversing the decision, or else facing a systemic financial crisis." This article is sourced from "Cai Lianshe," edited by GMTEight: Liu Jiayin.