Something big is going to happen in Washington recently - the chairman of the Fed is about to change. Powell is leaving office in May, and now the Trump team is conducting the final round of interviews, and the next head is basically finalized in the next few days.

It's quite interesting to talk about it. The Financial Times revealed that Trump and Treasury Secretary Bescent met with Walsh on Wednesday, but insiders privately said that the real favorite was actually Hassett. Why? Because he and Trump are on the same page on cutting interest rates. You see, Powell was previously criticized for refusing to cut interest rates sharply, but Hassett was the kind of radical who directly supported a 50 basis point cut in December.

But then again, Hassett himself patted his chest to ensure that he could maintain the independence of the central bank, but the market didn't buy it. Analysts are generally worried about whether the Fed's independent status will be affected after he comes to power - this is no small matter.

In addition to Hassett and Walsh, Waller, Bowman, and Rick Reed are also on the shortlist. Interestingly, all five of them support interest rate cuts, which to some extent reflects the real pressure brought about by Trump's economic policies.

According to the plan, there should be final results before the end of the year. Besant is leading the entire interview review process, and Trump clearly wants the Fed to go in a different direction.

When it comes to interest rate cuts, the Fed has cut interest rates twice this fall, with a cumulative 1.5% cut in 15 months, which is almost close to the interest rate level that stimulates the economy. However, internal opinions are not unified, and some officials are actually against it. There is a high probability that there will be disagreement in the next vote, and although most predict that the meeting on December 10, 2025 may be a third rate cut, Powell himself said he was not sure.

For our currency circle, we have to pay attention to this matter. The Fed has changed its position, and the policy wind has changed, and the trend of crypto assets such as Bitcoin will definitely be affected. If the expectation of interest rate cuts heats up, liquidity will be loose, which is theoretically good for the market; But if the policy wavers after the new chairman comes to power, the volatility will be great.

In short, the movements in Washington in the next few weeks are worth watching, this change of term is not a trivial matter for the global financial market, and the crypto market certainly cannot run away.