The power game in the White House has reached the Federal Reserve, with a major clean-up of central bank leadership quietly orchestrated by Trump and Treasury Secretary Bensent—Bitcoin will emerge as the biggest winner.

On August 3, White House National Economic Council Director Hassett suddenly revealed a key trend: Trump is 'actively seeking' the next Federal Reserve chair with Treasury Secretary Bensent. This is no ordinary personnel change, but a lightning war for control over monetary policy!

Current Chairman Powell's term lasts until May 2026, but Bensent has already stated: he will announce the successor list before the end of the year. More intriguingly, Trump has already laid the groundwork—just last week, he abruptly fired Labor Statistics Bureau Director McEntyre, solely for releasing 'ugly' employment data. Former director William Beach condemned this move as 'baseless and harmful to data credibility', but Trump is clearly eliminating all interest rate obstacles.

01 Hawkish Fall, Dovish Power Grab

The battle for the Fed chair has entered a fevered stage, with three core players emerging:

  • Kevin Hassett: Current White House economic advisor, has transformed from an 'independence defender' to a radical rate-cutter, publicly lambasting Powell for 'doing too poorly' and demanding an immediate 300 basis point cut, completely igniting liquidity expectations.

  • Scott Bensent: Current Treasury Secretary and Trump confidant, leading candidate selection, although hinted to be 'more satisfied with his current position', his hedge fund background suggests future policies may lean more towards the market.

  • Christopher Waller: Current Federal Reserve Governor, who, in the July meeting, teamed up with Bowman to cast the first double dissenting vote in 30 years, demanding an immediate 25 basis point cut, has become the internal front-runner against Powell.

This personnel earthquake has long been foreshadowed. After the Fed decided to keep interest rates unchanged on July 31, Trump raged on social media, calling Powell a 'stubborn fool', and for the first time issued a shocking directive: 'The council should take over decision-making power!'. The independence of the central bank is crumbling.

02 Interest Rate Cut Storm, Crypto Frenzy

Historical data reveals a brutal truth: the transfer of the Federal Reserve's scepter equals a nuclear explosion in the crypto market.

On April 17 this year, when rumors emerged that Trump was considering replacing Powell with Tiffany Fong, Bitcoin surged 2.48% in 15 minutes, while Ethereum skyrocketed 2.32% simultaneously.

Even crazier are the exchange data: Binance's trading volume surged by 45% and Coinbase's by 38%, revealing the bloodthirsty instinct of capital towards policy shifts.

The ascension of dovish candidates like Hassett will unleash an even more powerful tsunami of liquidity:

  • Interest rate cut expectations: The current federal funds rate is 4.25%-4.50%. If a 300 basis point cut is achieved, it will return to the zero interest rate era.

    Capital migration: During the easing cycle, over a trillion in speculative capital will flee the bond market and flood into high-risk assets like Bitcoin.

  • Maturity mismatch: Bensent hinted at 'announcing candidates by the end of the year', while speculative funds have begun to position themselves early, evident from a 5% surge in ETH's on-chain gas usage in a week.

Risk is surging, it's the decisive moment

But the bloodthirsty must beware of three swords of Damocles:

  • Inflation backlash: The US June CPI has rebounded to 2.7%. If Trump's tariffs push prices up, dovish policies may hit the brakes suddenly.

  • Data war: Trump is forcefully replacing the head of employment statistics, and future economic data may become 'White House custom-made', leading to wild volatility.

  • Technical divergence: The BTC Relative Strength Index (RSI) surged to the overbought zone of 71 after personnel rumors, warning of a potential pullback due to profit-taking.

Decentralized exchanges have become the winners in chaotic times. Platforms like XBIT, with their anti-censorship architecture, allow users to trade without identity verification and fully control their assets, leading to an explosion in trading volume amid policy uncertainty. As traditional exchanges become regulatory targets, DEX's on-chain fortress is becoming a new safe haven for capital.

The outcome of this Federal Reserve power struggle is clear: whether Hassett or Waller rises, interest rate cuts will certainly be unleashed before the end of 2025.

The candidate list crafted by hedge fund patriarch Bensent is essentially a 'liquidity liberation declaration'—when the era of zero interest rates returns, Bitcoin will no longer be an option, but a necessary choice for capital survival.

Tonight, all K-lines whisper the same prophecy: when the White House tears apart the independence of the Federal Reserve, it will be the crowning moment of the crypto empire.