The boots finally land on the replacement of the Federal Reserve Chair. Trump recently named two candidates — former Fed Governor Wacht and White House Economic Advisor Hassett. Simply put, both are "doves," but their approaches are completely different.

Who is Wacht? He has worked at the Fed for many years and understands how the Fed operates internally. His stance is "look at the data and be flexible in easing policies." Rate cuts? Sure, but I want to do it gradually — satisfying Trump's appetite for low interest rates without fully breaking the Fed's independence. The market's assessment of him is "risk is relatively controllable," and that’s the reason why. Plus, his connections within the Fed can help him reduce internal resistance.

Hassett, on the other hand, is different. This guy is a staunch Trump confidant and is known for advocating rate cuts in the White House. His position is very clear — cut the federal funds rate from the current 3.5%-3.75% range down decisively to below 3%, even considering going lower. He represents the "aggressive" camp — not interested in independence, just want cheap money.

Whoever gets appointed, the policy direction of the Fed in 2026 will be completely different. If Wacht takes the helm, it might be business as usual. But if Hassett calls the shots, the easing magnitude will be much greater. For the crypto market, a low interest rate environment often means risk assets are more sought after, and high-volatility tokens like SOL typically perform well during easing cycles.

The question is, how much independence does the Fed still have? This personnel change might make that issue even more acute. The market is betting on balancing the expectations of easing with policy transparency.