The Fed might be changing personnel, and this matter is much more explosive than you think.

The rumored new candidate is named Kevin Hassett. The name may be unfamiliar, but he has quite the background - former Chairman of the White House Council of Economic Advisers, definitely a veteran subordinate. The key point is this guy's attitude: he previously stated in an interview that if he were the chairman, "I would lower interest rates right now."

Why is it him? Let's break it down.

First of all, their positions are highly aligned. In recent years, Trump has frequently criticized the current Fed for its aggressive interest rate hikes, while Hassett happens to be a staunch advocate for rate cuts, making their policy ideas seamlessly connect. Secondly, their relationship is strong. They have worked together for many years, and the foundation of trust is there; such personnel arrangements are quite common in the political circle. However, it should be noted that the King of Understanding loves to change his mind at the last minute, and until there is an official announcement, no one can say for sure.

If we really change people, how will the market move?

In the short term, the stock market is very likely to soar. A rate cut means lower borrowing costs, and funds will flood into risk assets, with cryptocurrencies like BTC and ETH possibly taking off directly. However, looking at a longer timeline, problems arise—excessively loose monetary policy can easily ignite inflation, and we all remember the aftereffects of the last round of quantitative easing, right? The dollar will also come under pressure, as the expectation of rate cuts inevitably leads to capital outflows.

The most troublesome issue is actually the independence of the Fed. The purpose of this institution's existence is to make decisions calmly without political interference. Once the new chairman takes office and the policies clearly lean towards one side, that "firewall" basically becomes a mere formality. What the market fears the most is not the interest rate cut itself, but the unpredictability of central bank decisions, filled with political maneuvering.

In short, the signal released by this personnel change is very clear: monetary policy may be about to shift completely. For the crypto market, the short term will be a frenzy, while the long term depends on whether inflation can be controlled. Anyway, at this critical juncture, keeping a close eye on the movements of BTC and ETH is definitely a good idea, and volatility will certainly be significant.