Financial Times: Fed Independence Threatens Global Financial ‘Lifeblood’

By: theblockbeats.news|2026/01/16 14:30:18
0
Share
copy

BlockBeats News, January 16th. According to the Financial Times, the US Department of Justice has launched a criminal investigation into Federal Reserve Chair Powell, triggering global central banks' concerns about the compromised independence of the Federal Reserve. This not only concerns the direction of US monetary policy but also directly threatens a key crisis tool of the global financial system—the currency swap agreement.

The swap agreement is a core mechanism through which the Federal Reserve provides dollar liquidity to other central banks during crises, having served as a "financial lifeline" from the global financial crisis to the pandemic. However, the Trump administration's pressure on the central bank has raised concerns that such tools may become politicized.

Last year, European officials discussed establishing alternative arrangements, reflecting countries' alertness to the possible weaponization of dollar liquidity dependence. Analysts point out that if the US were to link swap agreements to geopolitical interests, the global crisis response capability would face a severe test.

You may also like

Aave Founder: What Is the Secret of the DeFi Lending Market?

When on-chain lending becomes significantly cheaper to operate end-to-end compared to traditional lending, mass adoption becomes not a question of if, but of when.

The Trader's Playbook: 7 Market Cycle Lessons From LALIGA’s 90 Minutes

What do LALIGA matches teach about crypto markets? Learn how consolidation, breakouts, and late-cycle volatility shape disciplined trading decisions.

How Smart Money Tracker Survived Live AI Trading at WEEX AI Hackathon

Discover how WEEX AI Trading Hackathon tested strategies with real capital—no simulations. See how Smart Money Tracker survived flash crashes and leveraged 18x in live markets.

80% Win Rate to 40% Drawdown: An AI Trader's Brutal Recalibration at WEEX AI Wars

Dive into the technical blueprint of an AI trading system built on LLaMA reasoning and multi-agent execution. See how Quantum Quaser uses confidence thresholds & volatility filters at WEEX AI Wars, and learn the key to unlocking 95% win rate trades.

AI Trading Strategy Explained: How a Beginner Tiana Reached the WEEX AI Trading Hackathon Finals

Can AI trading really outperform human emotion? In this exclusive WEEX Hackathon finalist interview, discover how behavioral signal strategies, SOL trend setups, and disciplined AI execution secured a spot in the finals.

When AI Takes Over the 'Shopping Journey,' How Much Time Does PayPal Have Left?

Stripe and PayPal are shifting from payment tools to AI business infrastructure, competing to become the default engine for AI transactions.

Popular coins

Latest Crypto News

Read more