2025-12-31 04:26:03

The latest Federal Reserve meeting minutes reveal internal divisions. One side is worried about a rebound in inflation, while the other fears a deterioration in employment, leading to a disconnect with the pace of rate cuts expected in 2026. Official forecasts predict only one rate cut for the year, but market expectations are significantly higher.

The issue is that a turning point is imminent. Powell's term is entering its final countdown, and Trump is set to announce the new Federal Reserve Chair next month. Whether this future leader leans dovish or hawkish will directly determine the direction of global liquidity — which in turn affects whether crypto assets can continue to attract incremental funds.

From a market perspective, the style of the new Chair will be a key variable influencing major cryptocurrencies like BTC and ETH. If a dovish candidate is chosen, expectations for rate cuts will rise, potentially giving risk assets a breather; otherwise, markets will need to prepare for policy tightening.

What are your thoughts on the internal divisions within the Federal Reserve? Can the dovish camp ultimately dominate policy direction?

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RunWhenCut

· 5h ago

Federal Reserve internal conflict, the new chair is the real key --- Dovish? Ha, will Trump choose a dovish candidate, or just think about how to stabilize the market --- Only one rate cut? The market's attitude is much harsher than that, and when it actually happens, no one will know how much it will drop --- Instead of obsessing over the meeting minutes, focus on Trump's pick in January, that will be the real trigger --- Inflation or employment, these two are destined to clash, anyway, we retail investors are just caught in the middle --- Before the new chair is confirmed, I advise everyone not to overthink, just sit tight

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FlashLoanLarry

· 5h ago

The Fed's internal conflict looks satisfying; if the dovish side wins, BTC will take off immediately. --- Basically, Powell is about to step down, and the new chairman is the key. --- Cut interest rates once? What a joke, the market won't buy it. --- If the hawks come to power, we should prepare to short; going against the trend is the way to go. --- Instead of guessing who the new chairman is, it's better to watch BTC's movement—crypto rules. --- Inflation vs. employment, both are blocked; the Federal Reserve is really impressive. --- Isn't this just betting on the new chairman? If you bet wrong, you'll lose everything. --- Can the dovish side win? Wake up, politics isn't that simple. --- Liquidity is the real boss; the chairman is just a worker. --- Anyway, I'm holding coins for the New Year. Let's see what the new chairman announces that day.

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GateUser-40edb63b

· 5h ago

The Federal Reserve is just putting on a show. Saying they'll cut interest rates once, who in the market would believe that? Watch how Trump handles it. Hawkish or dovish, it's all nonsense. The real key is who the new chairperson will be—that's the true variable. Splitting? Ha, they've never been united. It all depends on whose voice is louder. Only one rate cut in 2026? Wake up, everyone. That number is just a bluff; the reality will be more aggressive. Instead of obsessing over internal conflicts, focus on the new chairperson candidate—that's the real factor that will determine the future of the crypto world. Doves can't win; Trump won't let easing be so easy. Be prepared, everyone. Inflation rebounds and employment worsens—these two points don't match up. Who dares to raise interest rates recklessly now? As soon as the new chairperson is announced, BTC will react immediately. No need to wait long to see the outcome. Trust me, don't take the rate cut expectations too seriously. Political factors override everything. Regarding Trump's new pick, I bet the hawkish side has a higher chance. Everyone, get ready.

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Layer2Observer

· 5h ago

Well, there's a detail worth pondering—internal divisions themselves indicate a lack of clear consensus. In such a situation, the new chairman's power will be amplified, but it also means policy implementation could become more unpredictable. Let me look at the data—The number of interest rate cuts next year priced into the market differs greatly from official forecasts, which mostly reflects participants' premiums on the unknown rather than genuine policy signals. The key question is, who will Trump choose? If he leans dovish, it could indeed be beneficial for crypto in the short term, but from an engineering perspective, policy sustainability is the long-term logic. Purely increasing expectations of rate cuts can easily be reversed. I'm more concerned about whether this round of changes will break the existing capital flow pattern. Technically, BTC's sensitivity to liquidity is decreasing. If this trend continues, the impact of the chairman's candidate might be overestimated.

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MEVSandwich

· 6h ago

Doves should have taken the stage long ago, otherwise how can the crypto market breathe? The Federal Reserve is constantly hesitating, but the market has already given the answer. Basically, it all depends on who Trump chooses; if a hawk comes in, it will directly cause a sell-off. Rather than waiting for interest rate cuts, it's better to stock up in advance. Division exists, but ultimately, liquidity speaks. Is it really just one person deciding the direction of global assets? Absurd. I wouldn't dare to hold heavy positions before the new chair takes office. Doves win, and only then can the crypto market rise—simple logic. One official rate cut? The market expects eight; it's hilarious. How is that even possible? The Federal Reserve is already a mess internally. This depends on the announcement of the January candidate; that will be the real turning point.

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