The Fed governor just nominated by Trump is a tough character who can overturn financial rules — it is the 'super genius' who proposed the 'Mar-a-Lago Agreement' and advocated issuing 'century-long zero-interest U.S. Treasuries'.
This move directly overturned the table of traditional finance.
On one side, the Biden administration fills the deficit by issuing high-interest bonds, draining market liquidity, causing risk assets to be 'bled' by the bond market every day; on the other side, the Trump team lays it all on the table: 'Issuing debt is fine, but no interest will be paid, and the debt will be repaid slowly over a hundred years.'
In the past, this would have been condemned by the mainstream economics community as 'madness', but now? Biden's extravagance has already broken the bottom line of 'fiscal discipline', and Trump is just taking the game to the extreme: 'Want debt? No interest, just wait slowly.'
This is not just a nomination; it is a shift in financial power.
The signal released by this nomination is more deadly than the policy itself: the Fed's scales are tipping towards 'protecting growth, releasing liquidity'.
Inflation? Can tolerate it. Economic collapse? Absolutely not.
Once the mindset of 'century-long zero-interest bonds' is put on the table, even if it ultimately doesn't materialize, the imagination of the interest rate market will be thoroughly ignited — U.S. Treasuries will no longer be a 'safe haven' but a chessboard for policy games. The interest rate curve may be reshaped, and the past 'seeking progress while maintaining stability' will turn into 'policy dictates'.
For cryptocurrencies, this is a 'heavenly blessing'.
Don't wait until the actual rate cut to react. Market expectations always run ahead: as long as the signal of 'the Fed yielding to growth' is clear, funds will rush into risk assets in advance.
Trump and his team are doing one thing: turning the Fed from a 'rigid rule-maker' into a 'MAGA-style political weapon' — to boost economic growth, liquidity can be loosened, and the constraints of traditional finance can be broken.
What does this mean for cryptocurrencies?
The liquidity gates may open wider;
The 'tight constraints' of traditional finance may loosen;
Market risk appetite will be thoroughly ignited.
Is this just a nomination for a governor? This is handing a 'key' to the cryptocurrency market. The financial game of the new era may really be about to change.
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