Bloomberg recently made a big move: Trump plans to nominate current White House economic advisor Hassett to succeed the Fed chair. The news has sparked quite an intense reaction in the market—if this hawkish figure really takes the helm, the Fed's interest rate policy could see a dramatic shift, with some analysts predicting a potential rate cut of up to 3 percentage points.

Let's talk about Hasset first. As Trump's economic advisor, he has consistently advocated for a more aggressive interest rate cut strategy, even stating publicly that he would immediately ease monetary policy if he were chairman. Trump favors him largely because he is dissatisfied with the current chairman Powell's pace of interest rate cuts - in Trump's view, Powell is too slow and cannot keep up with his economic plan.

This potential personnel adjustment may bring several chain reactions. The first is the issue of the Fed's independence. If Harsit takes office, the formulation of monetary policy may be more influenced by political considerations rather than purely economic data, breaking the relatively independent tradition that the Fed has maintained for a long time.

Secondly, there is inflationary pressure. The price level in the United States has just eased, and if interest rates are significantly lowered at this time, it is equivalent to restarting the printing press, making a rebound in prices almost inevitable. Prices of goods on supermarket shelves are rising, and ultimately, it is the ordinary consumers who will foot the bill.

Looking at the USD exchange rate again. Lowering interest rates usually means a decrease in the attractiveness of the dollar, and international capital may turn to other markets in search of higher returns, such as emerging markets or traditional safe-haven assets like gold. Once the dollar weakens, import costs will rise, which will further push up domestic prices.

For the cryptocurrency market, this could be a double-edged sword. The Fed's easing has always been positive news for the crypto space, and it is not impossible for Bitcoin to break through the hundred thousand dollar mark. However, it is important to be wary that liquidity-driven surges are often accompanied by more severe pullbacks. Do you remember the collapse of LUNA two years ago? It dropped from several dozen dollars to nearly zero in just a few days. When market sentiment is exuberant, it is precisely when the risks are highest.

Ultimately, the essence of this game is the trade-off between short-term stimulus and long-term stability. Aggressive monetary policy may quickly boost economic data, but the cost could be deeper structural issues and a more difficult inflation situation.