Handwritten letter! As Trump applies pressure in various ways, Powell will deliver a speech in Europe tonight

As former President Trump escalates pressure in an unprecedented manner, Federal Reserve Chairman Jerome Powell is preparing to speak at a major central bank forum in Europe, drawing significant market attention to how he will balance stable signals of monetary policy with the delicate stance of defending central bank independence.On Monday, Trump took his criticism of the Federal Reserve to new heights through a handwritten letter and social media posts. In the handwritten letter, Trump included a global interest rate ranking chart, accusing Powell of causing the nation to "lose a lot of money" and demanding a "substantial" rate cut. The letter mentioned that if the Federal Reserve cuts rates, it could save "hundreds of billions of dollars" in interest costs.Meanwhile, Trump directed his ire at the entire Federal Reserve Board on social media, stating that Powell and his colleagues "should be ashamed for allowing this to happen to America." This continues his months-long attack on Powell, during which he has directly insulted Powell, even threatening to fire him, and publicly called for Powell to resign last Friday.The Trump administration's strategy seems to have gone beyond verbal pressure, beginning to lay the groundwork for dominating monetary policy after Powell's term ends. Powell's chairmanship will conclude in May next year. Reports indicate that Treasury Secretary Janet Yellen stated on Monday that there are candidates within the Federal Reserve to succeed Powell after his term ends. She also hinted that the government might utilize the board seat that will become vacant when Adriana Kugler's term ends in January to install a potential successor for the chair position.Trump explicitly stated in a media interview over the weekend that the prerequisite for the next Federal Reserve chairman is a willingness to significantly cut interest rates. This public commitment undoubtedly poses a severe challenge to the long-standing tradition of central bank independence from the White House.Support and Comparison on the International StageTonight, all this pressure will focus on Powell's speech at the European Central Bank's annual forum, often referred to as the European version of the "Jackson Hole" global central bank annual meeting.Central bank leaders from the U.S., Eurozone, U.K., Japan, and South Korea will exchange views on how global trade tensions and conflicts in the Middle East are affecting inflation and growth prospects. However, against the backdrop of seemingly controlled inflation in most countries, deeper questions may dominate the discussion: Will Trump's protectionism and unpredictable economic policies end this system that has dominated global finance for 80 years?Matteo Laghi, Chief Economist at BNP Paribas, who is set to attend the forum, stated:Like everyone else, they are struggling to understand what kind of world we are heading towards. They may have realized that no answers will be forthcoming in the short term. Therefore, the question is: How to formulate monetary policy in this environment?Powell will discuss alongside European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, Bank of Japan Governor Kazuo Ueda, and Bank of Korea Governor Lee Chang-yong. Powell's speech will be closely watched, as investors hope to find clues about the Federal Reserve's future policy path and its stance on independence.Trump often compares Powell's actions to the easing policies of other central banks when criticizing him. The European Central Bank has cut interest rates eight times in the past year, and the Bank of England has also lowered rates.However, at the dinner in Sintra, Lagarde specifically acknowledged Powell in her speech, praising his courage and receiving a standing ovation from fellow central bankers, which stands in stark contrast to Trump's fierce attacks at home