Assuming that Trump officially announces in the past few weeks that Hasset will take over as the Chair of the Fed, from that day until Powell hands over the reins, the Fed will be in a delicate dual-headed state. On the surface, Powell is still presiding over meetings, but the market pricing logic has already begun to align with Hasset's policy style.

This situation has occurred in history before. In 2013, Bernanke handed over to Yellen, and in 2017, Yellen handed over to Powell, both of which experienced similar transitional pricing. But this time it’s different—Hassett and Powell have much greater differences in policy philosophy than their predecessors, one advocating for supply-side interest rate cuts and the other being more cautious. Therefore, this time the "shadow chairman" effect may be even stronger.

How will the market react? It is highly likely to start repricing from three dimensions.

**First, let's talk about expectations.** The Fed's policy has never been solely decided by the Chair; rather, it is the collective expectations of the market regarding the future policy path that are at play. Once the market is convinced that the next Chair will be dovish, aligned with the White House's tone, and have a more relaxed regulatory attitude, the policy direction for 2026 will essentially be anchored in advance. Traders won’t wait until next year’s transition to adjust their positions; bond yields, stock valuations, the dollar index, and corporate financing costs—these factors will begin to shuffle immediately. Financial conditions may start to ease even before the benchmark interest rate has moved, subsequently affecting corporate capital expenditures and consumer confidence.

**Looking again at the market pricing side**. The yield on 10-year U.S. Treasuries will not wait until next year to reflect the expectations of interest rate cuts; the long-end risk premium will be compressed in advance. The stock market, especially technology stocks, AI concept stocks, and large-cap blue chips, will see a significant step-up in valuation support. The pricing adjustments brought about by this expectation gap are often more intense than the actual impact of policy implementation.

**Finally, it's the execution end**. Although Powell is nominally still at the helm, the statements within the FOMC, the wording of public speeches, and the tone of meeting minutes may begin to show subtle changes. After all, everyone knows the new captain is coming soon, so there's no need to steer the ship too far off course before the handover.