A wave of ripples has emerged in American politics as President Trump unexpectedly visited the Fed headquarters on July 24, marking the first formal visit by a sitting U.S. president to the institution in nearly two decades, which has drawn widespread follow.

During this high-level meeting, Trump directly urged Fed Chairman Powell to lower interest rates, advocating for it on the grounds of saving costs. He claimed that if the interest rate were reduced from 4.25% to 1%, the U.S. could save up to $1 trillion each year. However, Powell was not persuaded and instead gave a calm response to Trump's criticism of the building renovation costs, pointing out that the president's calculations included the third building that was completed five years ago.

This dramatic event has caused a strong reaction in the financial markets. Traders quickly adjusted their expectations for future monetary policy, with bets on interest rate cuts next year rising sharply to 76 basis points, three times the expectation in April. However, Deutsche Bank has taken a cautious stance, warning that the long-term inflation risks associated with aggressive rate cuts far outweigh the short-term savings.

This visit not only tested the Fed chairman's response capability but also raised concerns about the independence of the Fed. Some commentators believe that the president's actions may affect the decision-making autonomy of the Fed, subjecting it to political pressure. The development of this event will continue to affect the financial markets, and all parties are closely following the future policy direction of the Fed.