fedralreserve

Markets were already on edge but Trump’s updated national security strategy pushed volatility even higher. The document doesn’t just adjust U.S. foreign policy; it rewrites the expectations that shaped global defense spending for decades. And crypto felt the impact faster than almost any other asset class.
A strategy that shifts America’s global role
The core message of the new strategy is simple but heavy:

America will no longer carry the bulk of the world’s defense burden.
The plan argues that U.S. allies must take far more responsibility for their own regions, repeating the same warning Trump delivered at the United Nations last year. This isn’t just a military stance , it’s an economic one.
Investors reacted not to the politics, but to the downstream effects:
possible shifts in defense budgetschanges to government borrowinginflation pressureand the risk of slower monetary easing
All of these factors move financial markets instantly, especially crypto.
Why crypto reacted so fast
The sell-off wasn’t caused by anything inside the crypto ecosystem.

The shock came from what the strategy implies.
If NATO members raise defense spending from 2% to 5% of GDP, governments will need massive borrowing. That kind of surge usually pushes inflation higher, forcing central banks to rethink rate cuts.
And crypto is extremely sensitive to interest-rate expectations.
Bitcoin’s strongest rallies historically came during periods of lower rates and expanding liquidity. Anything that delays easing , or hints at future inflation , reduces appetite for risk assets. That’s why Bitcoin reacted almost immediately.
Markets still expect the Fed to cut
Despite the volatility, traders have not abandoned the idea of a rate cut next week:
CME FedWatch shows an 86% chance of a 25 bps cut.Reuters’ economist survey shows similar expectations.Polymarket traders place the odds at 94%.These expectations kept the market from dropping deeper, even as geopolitical tensions clouded the outlook.
A market caught between fear and anticipation
Investors are now trying to balance two forces:
The possibility of real monetary easingThe uncertainty triggered by Washington’s new global posture
This tension has revived old conversations about whether another prolonged downturn , even a new crypto winter , could form if geopolitical risks keep rising.
For now, all eyes turn to the Federal Reserve.

A confirmed rate cut could steady Bitcoin and restore confidence.

A hesitation or a more cautious tone could send risk markets into another decline.
The Fed’s next decision may decide whether this volatility becomes a temporary shakeout , or the start of a deeper correction.
#FedralReserve

This is the moment every insider whispers about.
This is the moment markets fear — and crave.
A moment so powerful it can reroute the destiny of the world economy in a single breath.
Tonight, the leak is no longer a rumor.
It is a detonation.
Donald Trump has chosen the next Chair of the Federal Reserve.
And the name roaring through Washington like a shockwave is:
🔥🔥 KEVIN HASSETT.
THE MONETARY WAR GENERAL.
THE ARCHITECT OF THE NEXT FINANCIAL ERA.
THE MAN WHO COULD UNLEASH A GLOBAL LIQUIDITY TSUNAMI. 🔥🔥
And here is the mind-melting part:
💣 THE ANNOUNCEMENT COULD DROP ANY HOUR.
Not tomorrow.
Not soon.
NOW.
Aboard Air Force One, Trump whispered the sentence that froze the world:
🗣️ “I’ve made my decision… you’ll hear it soon.”
That wasn’t a statement.
That was the sound of history beginning to bend.
💥 THE HASSETT SHOCK DOCTRINE: A FINANCIAL REVOLUTION IN MOTION
Kevin Hassett isn’t a policymaker.
He is a monetary disruptor.
A strategist with the power to alter the flow of global capital.
And he is pro-rate-cuts — aggressively so.
Not gentle easing.
Not mild adjustments.
But full-force liquidity revival, the kind that:

🚀 Reignites every risk market
🚀 Slams open the door to a mega bull cycle
🚀 Supercharges crypto into vertical liftoff
🚀 Melts resistance levels into dust

This is not a pivot.
This is a monetary reset event.

A shift large enough to reprice every asset on Earth.
🏁 THE FALLEN NAMES OF A FORGOTTEN RACE

Christopher Waller.
Stephen Miran.

Former contenders who are now nothing more than ghosts of the old regime.
Insiders report the decision is locked, sealed, irreversible.

Even Treasury Secretary Scott Bessent has reportedly confirmed:
🎄 THE FED SHOCK ANNOUNCEMENT WILL LAND BEFORE CHRISTMAS.

A holiday gift wrapped in chaos and opportunity.
🌍 THIS IS NOT JUST A NEW FED CHAIR. THIS IS A NEW GLOBAL ORDER.
The Federal Reserve is the heartbeat of the world economy.
Change the person running it — really running it —
and you change the entire structure of global finance.

With Hassett at the helm, expect:

⚡ A worldwide monetary realignment
⚡ Dollar shockwaves across continents
⚡ Explosive volatility ripping through markets
⚡ Crypto catapulted into a new supercycle
⚡ The possible birth of a once-in-a-generation bull era

This is the type of moment financial historians describe as
“The Inflection Point.”

We are standing on it.
⏳ The countdown is nearly over.
🔥 Markets are trembling like steel under maximum load.
💣 One press conference… and everything accelerates.

A new era is not coming.
A new era is starting right now.

Prepare for lift-off.
Prepare for chaos.
Prepare for the Hassett ⚡
#FedShockwave e 🌊
#FedralReserve
#TrumpEconomy y 🇺🇸
#bitcoin 🚀
#liquidity 💰
🌍
$pippin

Reports now suggest that Kevin Hassett, Trump’s long-time economic advisor and current Director of the National Economic Council, is almost locked in as the next Federal Reserve Chair. According to sources, he is clearly ahead of the other candidates, mainly because of his loyalty to Trump and his relatively high level of acceptance on Wall Street.

If this is confirmed, it would mark another clear shift in the Fed’s direction. Hassett is known as a pro-growth, pro-market economist who has long favoured policies that support corporate investment, tax cuts, and business-friendly regulation. That profile suggests a Fed leadership that is more sensitive to growth and employment and more willing to respond aggressively if the economy weakens.

For traditional markets, the immediate focus will be on the future rate path. A Hassett-led Fed is likely to face strong political pressure to keep financial conditions loose if growth slows or unemployment rises. That does not automatically mean permanent low rates, but it does increase the odds of faster and larger rate cuts once data justify it. In the short term, this kind of expectation usually supports equities, high-beta tech and credit, while putting pressure on the dollar and longer-term yields.

For crypto, the signal is mixed but important. On one side, a more growth-focused Fed and a higher probability of easier policy in the next downturn are generally supportive for risk assets, including Bitcoin and Ethereum. Liquidity tends to matter more than anything else for crypto cycles. If markets start to price in a friendlier Fed, the negative macro pressure that has been weighing on BTC and majors could gradually ease.

On the other side, Hassett is still likely to present himself as a guardian of inflation stability. If inflation data stay sticky, markets could be disappointed: rate cuts might arrive later than traders hope, and volatility around every Fed meeting would remain elevated. That kind of environment usually creates sharp swings rather than a clean one-way trend.

The key point is that the Fed chair decision is not just a political headline. It sets the tone for how the world’s most important central bank will react to growth scares, market stress and inflation surprises over the next four years. As the Hassett story develops, traders in both traditional markets and crypto will treat every new signal—from his speeches, testimonies and early comments on policy—as part of the macro roadmap for 2026 and beyond.
#FedralReserve

Former New York #FedralReserve trader Joseph Wang, known as The Fed Guy, believes the U.S. central bank could soon reverse course and restart balance sheet expansion before the end of 2025 — a move that could quietly reshape global liquidity conditions. After three years of balance sheet reduction, or “quantitative tightening,” the Fed may no longer have the option to keep draining liquidity from the system without destabilizing short-term rates.

Wang argues that this isn’t about rescuing risk assets, manipulating Treasury yields, or even preventing a liquidity crisis — it’s about control. In his words, if the Fed doesn’t inject fresh liquidity into the financial system by buying securities, it will gradually lose control over short-term interest rates, which are the foundation of its monetary policy framework.

The liquidity squeeze behind the scenes

The pressure stems from two interconnected forces: the Treasury General Account (TGA) and the repo market. As the U.S. Treasury rebuilds its cash balance in the TGA, it effectively pulls liquidity out of the banking system, leaving fewer reserves available in the financial sector. At the same time, the strong demand for repurchase agreements (repos) — short-term loans secured by Treasuries — reflects how tight dollar liquidity has become.

If this continues, Wang expects the Fed to step in and expand its balance sheet by $300 billion to $500 billion per year just to stabilize short-term rates. This move would quietly mark a transition from contraction to neutral or mild expansion, without formally announcing a new round of quantitative easing (QE).

The real motive: control, not stimulus

While some investors interpret potential balance sheet growth as a bullish signal for equities and crypto, Wang clarifies that this is primarily a technical response, not a macroeconomic stimulus. The goal isn’t to inflate asset prices but to keep monetary policy functional — ensuring that the Fed Funds rate remains the central anchor for global dollar liquidity.

However, the market rarely distinguishes motive from effect. History has shown that whenever the Fed expands its balance sheet, even for structural reasons, risk assets benefit indirectly through renewed liquidity and confidence.

A quiet inflection point

If Wang’s projection proves accurate, the Fed could soon enter a new phase of “stealth easing”, where policy normalization quietly gives way to liquidity management. The implications would stretch far beyond U.S. borders — affecting dollar funding costs, emerging market flows, and even crypto liquidity conditions.

As 2025 draws to a close, the story may not be about whether the Fed cuts rates — but whether it quietly turns the liquidity tap back on to preserve control. And when that happens, the market will likely feel the ripple long before the Fed admits it’s easing again.

— A Market Observer

The cryptocurrency market is once again showing signs of bullish momentum as investor sentiment moves into the "Greed" zone. This shift follows recent remarks from U.S. Federal Reserve Chair Jerome Powell, which many interpreted as dovish, signaling a possible interest rate cut in the near future.
Federal Reserve Tone Sparks Optimism
In a recent speech, Jerome Powell indicated that the central bank remains cautious about economic conditions but is open to loosening monetary policy if inflation continues to ease. While he did not commit to a rate cut, the market interpreted his tone as more supportive of economic growth, which typically benefits risk assets like cryptocurrencies.
Investors responded positively to the news, pushing Bitcoin and Ethereum higher. This reaction underscores how sensitive the crypto market is to macroeconomic signals, especially those tied to monetary policy.
Bitcoin and Ethereum Lead the Rally
Bitcoin saw a significant price increase following Powell's comments, regaining some of the ground it had lost during previous weeks of uncertainty. Ethereum also experienced a strong upward move, reflecting renewed confidence among market participants.
The rally in these two major cryptocurrencies has helped push the overall sentiment in the market back into "Greed" territory, according to sentiment tracking tools widely used by traders and analysts.
Investor Sentiment Turns Bullish
The return to greed indicates a shift in market psychology. After months of mixed signals and caution, traders appear to be positioning themselves more aggressively in anticipation of favorable conditions.
However, while the optimism is notable, it’s important to recognize the risks. Markets that quickly swing toward greed can also become vulnerable to sharp corrections, especially if expectations about Federal Reserve policy change.
Outlook for the Coming Months
The crypto market's short-term direction will likely depend on future economic data and any further statements from the Federal Reserve. If inflation continues to decline and economic growth remains steady, there is a strong possibility that interest rates could be cut, potentially fueling even more momentum for cryptocurrencies.
Still, traders should remain cautious. While the Fed’s current tone may be market-friendly, conditions can shift quickly, especially in an environment where inflation and global financial uncertainty remain in play.
Conclusion
The recent rise in Bitcoin and Ethereum prices, along with a return to "Greed" in market sentiment, suggests a renewed wave of optimism among crypto investors. With the Federal Reserve signaling a more supportive stance, the stage may be set for further gains. However, navigating this environment requires a careful balance of optimism and risk management, especially in such a volatile asset class.
#Bitcoin #Ethereum #CryptoMarket #FedralReserve #CryptoNews