Trump is stirring things up again. This time, during a cabinet meeting, he directly revealed that he might announce his pick for Fed Chair early next year. Reportedly, he has already narrowed it down to 10 candidates, and when he introduced Hassett at the meeting, he all but said, "The future Fed Chair is sitting right here." At the same time, he didn't miss the chance to take shots at the current chair, Powell, criticizing him for not being aggressive enough with rate cuts. What's even more striking is that Trump brought up JPMorgan CEO Jamie Dimon as his shield, saying even Dimon supports rate cuts!

My understanding is simple—this is just feeding the market more dovish signals. Hassett is a well-known dove who has publicly advocated rate cuts multiple times. Trump's repeated criticism of Powell is simply an attempt to create expectations of rate cuts. For risk assets like the stock market and cryptocurrencies, such expectations alone are a major short-term sentiment boost. Once policy signals turn more dovish, capital flows could shift even faster than actual rate cuts.