In the past two days, there has been significant activity within the Federal Reserve, with several key officials speaking out intensively, releasing a large amount of information.

First, Richmond Fed President Barkin stated that inflation is indeed still at a relatively high level, but there are no signs of it spiraling out of control for now. Following that, Atlanta Fed President Bostic directly put forward a major viewpoint: inflation risks are gradually cooling down, and it is expected to return to the 2% target by the second half of this year.

Bostic also emphasized a critical detail—the interest rate is now close to the so-called "neutral level," and there is basically no need to cut rates further. The current policy is actually at a delicate balance point, neither overly accommodative nor overly tight. Interestingly, he gave an "encouraging" assessment of the latest inflation data, implying that the probability of the economy achieving a soft landing is increasing.

Everything initially seemed to be heading in a positive direction, but then the plot suddenly took a turn.

House Speaker Johnson suddenly spoke out, publicly calling for the Department of Justice to continue investigating Federal Reserve Chair Powell. His wording was quite interesting—"If innocent, it will be proven innocent." This political maneuver immediately injected an element of uncertainty into the market. There still seem to be some undercurrents between Washington and the Fed that have not surfaced.

Now, the situation is gradually becoming clearer:

✅ The overall trend of slowing inflation indeed appears to be stabilizing
✅ The Fed’s stance is to maintain the status quo and not act rashly for now
❓ But political games in Washington could disrupt at any time

The key issues to watch next are: Can Powell’s investigation be smoothly navigated? Can inflation truly stabilize at the 2% target this year? Also, will political factors affect the Fed’s decision-making independence?

All of these will directly impact the USD’s movement, the performance of mainstream cryptocurrencies, and the overall market sentiment. What do you think about how this drama will unfold next?