Bitunix analyst: Trump pressures the Fed, the US economy may fall into a stagflation cycle.

BlockBeats news, on November 19, the U.S. monetary system is facing a new round of political shocks. The confrontation between Trump and the Fed has escalated from a war of words to a substantial power grab, as he attempts to dismiss board member Cook and install economic advisor Milan into the FOMC, aiming to create a “super majority” that supports significant interest rate cuts. Several economists, using models, point out that if monetary policy falls under political control, the U.S. will initially experience a brief prosperity characterized by growth and low unemployment, followed by structural consequences of resurgent inflation, rising nominal interest rates, and declining economic growth. The risk of stagflation from the 1970s will re-emerge. Analysis also suggests that political figures often tightly bind interest rate decisions to election cycles; while short-term stimulus may create superficial prosperity, the cost is uncontrollable inflation and subsequent deep adjustments. If Trump successfully reshapes the board before 2026, the independence of the Fed may be eroded, and the dollar's reserve status and long-term borrowing costs could be re-priced by the market. Bitunix analysts' views: From historical examples to current tactics, Trump's strategy clearly targets direct intervention in the interest rate path, with consequences that will not be short-term fluctuations, but rather a credit discount at the institutional level. If the Fed is forced to pivot significantly before inflation is under control, the U.S. economy will enter a typical cycle of “prosperity followed by stagflation.” For global capital, the real risk is not Trump himself, but the loss of the last line of defense for U.S. monetary policy.