【Warning⚠️】If this person becomes the Chairman of the Federal Reserve, your positions might be in danger!
Recently, there has been a frenzy of rumors in the circle: former Federal Reserve Vice Chairman Clarida suddenly named Kevin Walsh, saying that if he takes office, the entire game rules of the Federal Reserve will change! This is not just a simple change of “hawkish” or “dovish” leadership, but a possible “systemic revolution” that could overturn the underlying logic of the market.
🔥The core is just three points, all explosive:
1. Tear up the “script,” eliminate forward guidance: Walsh is extremely opposed to the current model where the Federal Reserve feeds the market with the “dot plot.” He believes this undermines the credibility of policy. Once he takes office, the “policy roadmap” that the market relies on the most may directly disappear, so everyone should prepare to swim naked in a larger fog and volatility!
2. Subvert operations: “First drastically reduce the balance sheet, then discuss interest rate cuts”: This is completely opposite to the current path of “mainly cutting interest rates, quietly reducing the balance sheet.” Walsh believes that if the massive dollar liquidity (water) is not drained first, inflation cannot be controlled, and there is no space for interest rate cuts. This means that dollar liquidity may suddenly tighten, and those cryptocurrencies and MEME coins supported by liquidity bubbles will be very dangerous.
3. Challenge the Treasury, redraw the power boundaries: He advocates re-examining the old agreements between the Federal Reserve and the Treasury, emphasizing that fiscal policy must be self-disciplined, and we should not always rely on the central bank to print money for a safety net. In the long run, this is a good thing, but if the two giants “fight” during the process, the market will be the first to be shaken.
What does this mean for us in the crypto circle?
In short, if this comes true, we will usher in a “scarcer, more expensive, but also more unstable” dollar. The Federal Reserve may revert from being the “market nanny” to a “stern instructor.” The narrative of short-term speculation on liquidity frenzy needs to be reassessed, and all asset logic relying on cheap dollar liquidity may face revaluation.
What does everyone think? How likely do you think it is for this “disruptive” chairman to take office? Are your positions prepared to deal with greater macro volatility? Let’s chat in the comments! 👇
