Bousquet: The Federal Reserve's independence comes from its political arrangement, and public trust is the sole source of its credibility.

Powell believes that political pressure is not a threat, and what truly determines the Fed's independence is the Fed itself.

Federal Reserve Chairman Powell is facing a serious policy dilemma: under immense government debt and political pressure, the Fed has had to abandon its independence and anti-inflation stance. Instead, it has resorted to measures like quantitative easing to finance the government, creating a situation of "fiscal dominance" similar to the Volcker era of the 1970s. This foreshadows the Fed's need to reinitiate loose monetary policy, which could potentially drive up the prices of assets like Bitcoin.