The Fed's "interest rate maze" has completely exploded! Everyone is waiting for the news of a 25 basis point rate cut in September, but U.S. Treasury Secretary Besant directly flipped the table - not only did he angrily confront Fed Chairman Powell on Fox Business, saying "I was shocked," but he also threw out a bombshell: the Fed should have cut rates by 100-150 basis points long ago, and the current high rates are already "choking us," while a 25 basis point rate cut in September? It's all just a smokescreen to fool the market!
This round of criticism is not just "casual complaints," but carries the harsh momentum of "forcing policy": Besant not only called out Powell for being "silent when he should speak," but also stated that he would have intensive meetings with Fed Chair candidates next week, and the first round of candidates will be determined in the first week of October - clearly aiming to accelerate rate cuts by relying on "changing advisors" and directly increasing the uncertainty of the Fed's policy. Now the market is all waiting for Powell's counterattack, while risk assets like ETH and BTC have already been pushed to the cliff's edge by this "interest rate storm."
1. Bessent angrily tears into Powell: 'What you should have said but didn't, what are you pretending?'
Powell's speech yesterday became the fuse that ignited the contradictions — it completely avoided the 'direction of interest rates', not even mentioning the magnitude of the rate cuts or discussing policy rhythm. This kind of 'Tai Chi' operation directly made Bessent go all out on the show.
'Powell's silence is digging a pit for the market!' Bessent slammed the table and said that it is clearly the 'rate cut cycle' of the Federal Reserve now, but Powell is unwilling to say 'how much to cut, when to cut', allowing the market to guess back and forth, which will only exacerbate volatility.
'25 basis points? Not enough! At least 100-150 basis points is needed!' This is Bessent's first clear statement of the 'real rate cut target': he believes the current interest rate is 'ridiculously high', severely limiting corporate investment and consumer spending. Only by cutting to the 'neutral interest rate' (an interest rate level that neither stimulates nor suppresses the economy) can the economy be saved. A 25 basis point rate cut is at best just 'scratching an itch' and cannot solve the problem at all.
'The Federal Reserve is as slow as a snail; if it drags on, it will be too late!' Bessent's sharper accusation is 'policy lag': he said that the Federal Reserve's current rate cut actions are already far behind the economic situation. If it continues to drag on, not only will it miss the window to rescue the market, but it may also render the previous regulatory results 'null and void' — all his words are filled with dissatisfaction towards Powell's 'inaction'.
You must know that Bessent, as the U.S. Secretary of the Treasury, and the Federal Reserve were originally 'policy partners'. Now, openly tearing faces and angrily confronting each other, the underlying reason must be 'economic pressure forcing action': either U.S. economic data is worse than it appears, or the White House has reached its limit with the current interest rate policy, which is why it is using this 'public pressure' approach to force the Federal Reserve to make concessions.
2. There's more to come: Next week, candidates will meet, and in October, a selection will be made. Bessent wants to 'refresh' and push for rate cuts.
Bessent has not just remained at the level of 'cursing', but has directly released an 'action card' — this is what truly panics the market.
'Next week, there will be intense meetings with the Federal Reserve chair candidates, and the first week of October will decide the first round!' Bessent revealed on the show that in the coming week, he will have 'one-on-one deep conversations' with several Federal Reserve chair candidates, and the first week of October will determine 'the candidates for the first official meeting'. Although he praised 'some candidates for their amazing performance', he didn’t leak even half a name, leaving enough suspense.
'Changing candidates means changing policy direction!' Anyone with common sense can see that Bessent is trying to 'screen for candidates who are more proactive about rate cuts' to change the Federal Reserve's current 'conservative pace'. You must know that the policy inclination of the Federal Reserve chair directly determines the direction of interest rates — if the new candidate leans more towards 'easing', then the probability of a 150 basis point rate cut will skyrocket; conversely, if they still lean towards 'caution', the market will only become more chaotic.
This wave of operations is equivalent to giving Powell an ultimatum: either you actively accelerate interest rate cuts, or I will find someone who can push for rate cuts to replace you. This kind of power struggle has directly caused the Federal Reserve's policy expectations to spiral out of control — previously, the market could rely on a '25 basis point rate cut' to stabilize, but now the possibility of '150 basis points' has suddenly emerged, and even the decision-making team may need to change. Risk assets simply don't know which way to go.
3. The fatal impact on the cryptocurrency market: policy uncertainty is at its peak, will ETH/BTC first face a 'bloodbath'?
The current cryptocurrency market has already been placed in a dilemma by this 'interest rate storm':
If Powell compromises and acknowledges 'a 150 basis point rate cut' — it would be beneficial in the short term but lay mines for the long term: If the Federal Reserve really makes a significant rate cut, market liquidity will ease, and ETH and BTC may surge; but 'significant rate cuts' often mean serious economic problems. If economic data deteriorates later, risk assets will still be sold off.
If Powell hardens his stance and refutes Bessent — it would be a short-term negative, directly leading to a crash: If Powell openly denies 'a 150 basis point rate cut', or even emphasizes 'maintaining high interest rates longer', then the market that has risen based on 'rate cut expectations' will instantly reverse, and ETH may directly fall below $4000, while BTC will also be pulled back below 40000.
The most terrifying thing is the 'prolonged tug-of-war' — increased volatility, retail investors being repeatedly harvested: If Bessent and Powell keep 'bickering', and policy expectations do not land for a long time, ETH and BTC will fall into a 'worried about bad news with every slight rise, hoping for good news with every slight fall' oscillation. The big players will just take advantage of this volatility to 'sell high and buy low', harvesting retail investors who chase after rising and falling prices.
What's more crucial is that next week Bessent will meet the candidates, and the actions in October will continue to add drama to the market — every time there is news about a candidate, it will trigger a swing in 'rate cut expectations', and the cryptocurrency market, being one of the 'most sensitive risk assets to interest rates', will inevitably become a 'victim' of this game.
A final reminder: don't bet on direction, first control risks!
What you should not do now is to 'bet on whether Bessent or Powell will win':
For those holding positions, set stop losses tightly first (for example, if ETH falls below 3900, exit immediately; if BTC falls below 40000, decisively clear), don't expect to 'survive the volatility by holding onto positions'.
If you want to buy at the bottom, wait a bit longer — wait for Powell's response, wait for the candidate list to be clarified, wait for the market to form clear expectations, then it won't be too late to act.
Don't touch high leverage! With such significant policy uncertainty, a sudden message can cause contracts to be liquidated. It's more important for small funds to survive steadily than anything else.
This 'Bessent VS Powell' interest rate war has just begun, and the warning for bloodshed in the cryptocurrency market has already sounded — don’t be fooled by short-term fluctuations. Controlling risks is the only way to wait for the real opportunity.
How much do you think the Federal Reserve will ultimately cut rates? #狗狗币ETF进展 How much will ETH be hit by this storm? Let's discuss your judgment in the comments!
