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Tonight, the nomination of the Federal Reserve Chairman is announced. The unpromising Waller has been nominated. Truly, he is a man who understands power, showing no hesitation in nepotism.

Among the 4 candidates, Hasset is the closest, but his independence is too weak, which is frowned upon by the market. As a second choice, Waller successfully rose to power thanks to his father-in-law, the head of Estée Lauder, and his decades-long friendship with the man who understands power.

Waller comes from Morgan Stanley and served as a governor at the Federal Reserve during Bernanke's tenure, playing the role of a "Wall Street liaison". Historically, he is a representative of the hawkish stance, emphasizing inflation even on the eve of the 2008 financial crisis and criticizing the Federal Reserve's quantitative easing during the pandemic.

Both times, his views were inconsistent with mainstream opinions, leading the market to believe that his "judgment is poor". It is no wonder that once the news broke, many economists thought that "the man who understands power has chosen the worst candidate".

Impact on the market: Waller is inclined towards quantitative tightening, reducing the issuance of dollars for bond purchases, which will lead to decreased liquidity and an appreciation of the dollar, unfavorable for U.S. stocks, Bitcoin, and gold and silver.

From the time the news broke last night to its confirmation today, the market trend indeed aligns with the logic mentioned above. However, he is quite supportive of Bitcoin, so in the long run, there is still hope.

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