Recently, a high-stakes game surrounding the value of the dollar is unfolding in Washington. The main players in this game are the White House and the Fed, with the core controversy focusing on how to handle the enormous debt burden of the United States.

According to reports, Trump is actively promoting a strategy for the devaluation of the dollar, which is seen as a means to manage national debt. Meanwhile, Fed Chairman Powell insists on the current monetary policy stance, which has led to a clear divergence between the two.

The founder of the renowned investment management company Bridgewater Associates expressed his views on a social platform. He pointed out that the conflict between Trump and Powell is essentially a debate about the value of currency. He explained that in the case of excessive debt and borrowing, the usual response is to lower real interest rates and devalue the currency. This practice benefits debtors but is detrimental to creditors.

Trump's criticism of the Fed has been persistent. He has repeatedly called for Powell to resign and even suggested the possibility of firing Powell. These criticisms mainly stem from the Fed's decision to pause interest rate cuts since December 2023.

This debate reflects the potential conflict between the executive branch and the central bank in the formulation of economic policy. It highlights the complexity of seeking a balance between managing national debt, maintaining currency value, and stimulating economic growth.

As this game continues, financial markets and economists are closely monitoring the developments. This not only relates to the direction of U.S. economic policy, but may also have a profound impact on global financial markets.