Recently, a notable policy development has attracted attention. According to reports, on December 13, Trump confirmed during an interview that he had a 45-minute meeting with former Federal Reserve Board member Kevin Warsh at the White House. This meeting was not straightforward — Trump directly asked Warsh whether he could support more aggressive rate cuts if he were to serve as the next Federal Reserve Chair.

Even more noteworthy is that Trump publicly expressed hope that interest rates could be lowered to 1% or even lower within the next year. His reasoning is straightforward: the US has accumulated $30 trillion in national debt and requires lower financing costs to ease the burden. Once this statement was made, Warsh's ranking in Trump’s favor quickly rose, and he has become the leading candidate. Of course, other candidates like Kevin Hasset are also being considered.

This move has sparked market discussions. The Federal Reserve has long emphasized independence, but now this direct political pressure raises the question: will it change this tradition? It remains a suspenseful issue.

From a market perspective, although the Federal Reserve has signaled a dovish stance, market reactions are quite complex. Key data are scheduled for release next week: Tuesday’s November non-farm payrolls and Thursday’s CPI data — both could become turning points for the dollar’s trend. If inflation data come in below expectations, the rationale for rate cuts will increase, and the dollar could face further pressure. These changes will also have chain reactions on liquidity and price trends in the cryptocurrency market.

What do you think about this situation? Can interest rates really drop to 1%? How much will political pressure impact the Federal Reserve’s independence? Looking forward to your thoughts in the comments.