2025-12-30 15:26:15

The power transition of the Federal Reserve is imminent. In May 2026, the current Chair Powell's term will end, and the Trump administration will hold the nomination power for the new chair. This is a major variable for global financial markets, especially digital assets.

Currently, economic data is somewhat contradictory—unemployment is rising, new job creation is shrinking, but consumer spending and AI investments are stubbornly boosting GDP growth. This kind of seesaw data will lead to fierce debates within the Fed over interest rate cuts.

The key point is that the new chair doesn't actually hold that much power. The Federal Open Market Committee (FOMC) is the decision-making body, and the new chair needs to secure majority support. Moreover, by 2026, several hawkish members will gain voting rights, making it harder to reach a quick consensus on rate cuts. However, the perspectives of the 12 regional Fed presidents (five rotate voting rights each year) can help balance some risks, and their long-term appointments can also help preserve the Fed's independence to some extent.

Popular candidates include Federal Reserve Board member Chris Waller, former Board member Kevin Warsh, and former White House Chief Economist Kevin Hassett. The market currently bets that Hassett has the highest likelihood. The issue is—his close ties to Trump raise concerns that the Fed might be forced to implement "aggressive rate cuts," which could significantly impact liquidity expectations in the crypto space.

Finally, the appointment must also pass the Senate, requiring Senate approval. The entire process involves many uncertainties.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

8 Likes

Reward
8
7
Repost
Share

Comment

0/400

Liquidated_Larry

· 54m ago

Hasset taking the stage means the crypto world is about to take off... Aggressive rate cuts are just printing money like crazy. Wait, the Senate still needs to vote, and this uncertainty is huge. If Powell steps down, it really could change everything. The new chairman's power isn't that great? Then I was worried for nothing before. This game feels like Trump is playing... and the coins are about to rise.

View OriginalReply0

AirdropHunterXiao

· 10h ago

Hasset is about to take off in the crypto world, a bold rate cut for a huge profit.

View OriginalReply0

AlphaBrain

· 15h ago

Hashet is about to take off in the crypto world? Radical interest rate cuts and liquidity explosion.

View OriginalReply0

OldLeekConfession

· 16h ago

If Hasset takes the stage, liquidity will skyrocket directly. The crypto circle is about to feast.

View OriginalReply0

FlatlineTrader

· 16h ago

Hasset is up? The crypto world is going to be crazy, liquidity celebration warning The hawkish rotation is a bit annoying, the difficulty of reaching a consensus on rate cuts is skyrocketing The real test is in the Senate, there are too many uncertainties Checks and balances are actually okay, not to the point where the new chairman can dominate everything Unemployment rate soars while GDP is still growing, these data are conflicting The 2026 event is already being speculated on, the market is really restless Aggressive rate cuts sound great, but how much will they actually be implemented? With hawkish voices in the majority, this situation is not very friendly to long positions

View OriginalReply0

DuckFluff

· 16h ago

Aggressive rate cuts? Isn't that just flooding the market? Cryptos are definitely going to take off this time --- Hasset is such a Trump supporter, it feels like the Federal Reserve's independence is at stake --- Wait, hawks take turns stepping up, isn't that making rate cuts more difficult? --- The Senate still needs to vote? There are quite a few uncertainties, the crypto market is about to have a rollercoaster ride again --- Consumer spending and AI are propping up GDP, the data is really solid, but what if the unemployment rate jumps? --- The new chair's power isn't actually that great, which is a pretty good safety net --- May 2026... still a wait, can the crypto market hold up until then? --- Everyone's betting on Hasset, which means the market's real hope is for aggressive rate cuts --- The design of twelve regional Fed presidents checking each other is quite interesting --- Liquidity expectations are really key; whether crypto prices can take off all depends on this

View OriginalReply0

MetaMisery

· 16h ago

If Hasset takes over, liquidity will explode, and the crypto world will be the main course then. --- The hawkish stance is indeed troublesome; reaching a consensus on rate cuts won't be that easy. --- The Senate also has variables; we still need to watch the show over the next couple of years. --- Aggressive rate cuts sound great, but when it actually happens, it might be a different story. --- The checks and balances mechanism is still useful; don't be scared by the headlines. --- Worrying about 2026 now is a bit early; the market's reaction is surprisingly quick. --- The FOMC is the real core; no matter how awesome the new chair is, they still have to bow and scrape. --- If the data keeps swinging like this, the debate over rate cuts will definitely go on endlessly.

View OriginalReply0