Power Structure Adjustment: The Federal Reserve Will Face a New Turning Point in 2026

A critical milestone is approaching. The Trump administration has finalized plans to nominate a new Federal Reserve Chair in early 2026. The deeper implications of this personnel change may go far beyond historical precedents — it signifies a reshaping of the entire monetary policy system's power dynamics and decision-making mechanisms.

The focus of this selection process has long shifted from evaluating candidates' personal credentials to the underlying logic of power distribution and systemic reform trends.

**Obvious Shift in the Center of Power**
Treasury Secretary Yellen has seemingly become the key decision-maker in this process, with her role now surpassing traditional constraints. This is not just about selecting a candidate; it involves implementing a new policy agenda centered on continuously releasing liquidity and promoting low interest rates. In other words, the incoming Federal Reserve Chair will need to work closely with this expanding power holder in the Treasury.

**Unprecedented Transparency in Policy Orientation**
The Trump administration's policy stance is now crystal clear: ensuring that every decision by the Federal Reserve aligns with the political goal of creating a loose financial environment and igniting economic growth. This marks the rapid transformation of the old "inflation control first" framework into a new paradigm of "economic growth first."

**Potential Turning Point in Market Dynamics**
From the perspective of crypto assets, this change solidifies a fundamental macro expectation — a long-lasting, highly certain low-interest and liquidity-friendly environment carefully constructed by political forces from the top down. Uncertainty is diminishing, creating a macro environment conducive to the appreciation of risk assets, which is gradually becoming more fertile.