Hassett really played a beautiful hand this time.

Just when Fed officials collectively entered a period of silence and Powell and the others could not speak out, the "shadow Fed chairman" suddenly jumped out and publicly shouted: next week's meeting should cut interest rates by 25 basis points. The timing is too precise - when your real chairman shuts up, I will tell the market how to go.

What's even more amazing is the market reaction. Wall Street understood almost in seconds, and traders immediately began to adjust their positions according to Hassett's statement. To put it bluntly, the market has already assumed that this guy is the next head of the Federal Reserve.

Trump seems to be a bit wavering in recent days? Don't be fooled by appearances. The old man is playing the next big chess game: first let the wind test the water temperature, then let the shadow characters come out to explore the way, wait for the market to get used to the new rules of the game, and finally officially announce his appointment. Standard anticipation management textbook examples.

Now Powell is really in a dilemma. Cutting interest rates next week is equivalent to admitting in disguise that Hassett has the final say, and the Fed's independence is completely broken; If you don't cut interest rates, once there is a problem with the economic data, the Trump team will definitely put the blame on you. This game is too dead.

The core goal of the whole operation is clear: to let the market slowly accept the new reality that "policy no longer only depends on data, but also depends on the face of the White House". When everyone gets used to it, Hassett's succession is a matter of course.

For the currency circle, this matter has a big impact. Expectations of the Fed's policy shift to easing are heating up, and risk assets may usher in a wave of liquidity.