Last week, Trump publicly stated that the Federal Reserve's interest rate decisions should be influenced by the President's recommendations. His logic was straightforward—seeking a Fed Chair willing to implement aggressive rate cuts, with the ultimate goal of bringing rates down to 1% or even lower. This reflects a clear policy stance: expansionary liquidity management.

As a leading candidate for the next Fed Chair and Trump's chief economic advisor, Hassett responded to this statement in the media. He emphasized that presidential policy suggestions must be based on data, and Fed decisions require a collective process; independence cannot be compromised. At first glance, this seems to endorse Fed independence, but the deeper implications are worth pondering.

In reality, Hassett's remarks hint at a possible direction: the next Fed Chair might operate with a bias toward easing, but emphasizing independence precisely indicates that the market's greatest concern is political interference. He's sending a signal—that reforms will proceed steadily, but the overall direction of reform is already determined.

If the Fed ultimately adopts a more accommodative monetary policy, in theory, global capital costs will decrease, and liquidity will increase. For risk assets like Bitcoin, ETH, and others, this generally means opportunities for capital inflows. Cheap capital often flows into highly volatile crypto assets, creating demand for allocation.

However, the issue lies in uncertainty. If rate cuts are driven by political pressure rather than economic data, market concerns about dollar credibility and future inflation could intensify. Historical experience shows that such policy-driven positives often turn into negatives once expectations are realized—Bitcoin, for example, has previously risen short-term under rate cut expectations, only to quickly retrace. The misalignment of political and economic cycles can amplify volatility.

Therefore, the key is to observe the actual implementation of Fed decisions and how they deviate from market expectations. This structural uncertainty will likely continue to suppress stability in the crypto markets in the short term. Investors need to adjust their positions based on data changes rather than single policy expectations.