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Recent rumors about the leadership of the Federal Reserve have caused a lot of buzz. According to reports, Trump plans to announce the list of potential successors to current Fed Chair Powell in January next year, which means Powell, whose term was originally set to end in 2026, may face an early departure. Powell has previously been criticized for his slow decision-making on interest rate cuts, and now this "power transfer" is officially on the agenda.
Most notably, the White House is even considering initiating legal proceedings against Powell on the grounds of "gross misconduct." This is not just a personnel adjustment but a direct challenge to the Fed's independence, which has lasted for a century.
The two leading candidates for the next chair are former economic advisor Kevin Hasset and former Fed Governor Kevin Wash. Whomever ultimately takes the position signals that future monetary policy decisions by the Fed may be more influenced by political needs rather than purely economic indicators.
From the perspective of the crypto market, changes in Fed policy directly impact global liquidity flows. Once political factors start influencing monetary policy, market expectations are bound to fluctuate dramatically. As risk assets, BTC and ETH often react in advance to such policy uncertainties. Smart traders have already begun adjusting their asset allocations to seek more stable safe-haven options.
The current question is: will Powell choose to resign early under pressure? Can the Fed's independence withstand this round of power struggles? What is your view on how this upheaval might affect the future trajectories of BTC and ETH?