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🔥 Power Struggle at the Federal Reserve: Can Policy Shifts Activate Liquidity in the Crypto Space?

White House economic advisor Hassett recently issued a strong statement—The Federal Reserve is moving too slowly on interest rate cuts. His reasoning sounds a bit harsh: other countries are easing monetary policy, while the US remains stagnant, leaving the global market far behind.

Looking at the data makes it clear. The US economy grew at a 4.3% rate in Q3, far exceeding expectations. But Hassett is still dissatisfied, believing the Fed needs to adopt a more aggressive rate-cutting strategy. He attributes this achievement mainly to Trump’s policies, especially tariffs. As for AI reducing inflation? He’s optimistic about that too.

The problem is, the Federal Reserve is in disarray. Although they cut rates by 25 basis points in December, they immediately signaled a "pause," and three governors surprisingly voted against the move. Such internal divisions are rare in Fed history.

Even more interesting is the power struggle. Trump wants his people in the Fed, threatening to install the "strong rate-cutting faction." Hassett claims to respect central bank independence, but many question whether he’s actually acting as a "White House spokesperson." Public confidence in the economy is low, yet he claims the media is distorting the data.

From the crypto market perspective, these monetary policy changes can indeed influence liquidity. Expectations of rate cuts often boost demand for risk assets, and digital assets like BTC and ETH tend to benefit. But the key is whether policy will actually loosen. Currently, the Fed’s stance is wavering, and the market is watching who will ultimately take the helm. A major monetary shift is approaching, which could be a crucial turning point for capital flows in the crypto space.