Powell’s term ends in May next year, and the candidate for the new chair has already emerged.

This candidate recently stated: the independence of monetary policy will not be compromised, and the window for rate cuts remains open. That said, the market is more concerned about whether the new chair will continue the current hawkish stance or lean toward the White House.

A change in Fed leadership is no small matter for global capital markets. The direction of interest rates directly determines funding costs, which has a huge impact on the liquidity of risk assets, especially the crypto market. When expectations for easing rise, capital naturally flows to high-volatility sectors; once a tightening signal is clear, the retreat is faster than anyone else.

At this crucial moment, all sides are watching the Fed’s personnel arrangements. The new chair’s policy orientation could redefine the liquidity environment for the next two years.