Breaking news! The world's most dangerous man presses the mute button, and $BTC, $ETH are about to enter the "blind box" era?

Kevin Walsh’s nomination was completed in an almost counterintuitive silence. No spotlight in the White House Rose Garden, no joint appearance with the nominee, only a brief early morning announcement on social media. This deliberate absence broke nearly three decades of tradition, catching many economists by surprise.

If Walsh ultimately takes the helm at the Federal Reserve, this silence itself is the first and most important policy signal he has sent. It points to a core shift: the Fed may significantly reduce its “noise” output to the market.

Looking back to 2017, when Jerome Powell was nominated, the scene was very different. He appeared alongside the sitting president and pledged that the Fed would actively respond to risks. Since leaving the Federal Reserve Board, one of Walsh’s core criticisms has been that Fed officials “say too much.” He has pointed out that the practice of words swinging with data is both common and counterproductive.

Former Atlanta Fed President Dennis Lockhart also admitted that the Fed’s frequent speeches are sometimes perceived by markets as “jarring noise,” confusing the message without adding value. Walsh may be able to bring order to this situation.

This “less is more” philosophy is not without precedent in central bank history. Before the 1990s, central bank governors worldwide generally believed in the motto “Never explain, never justify.” In 1987, then-Chairman Alan Greenspan even told senators that if his words sounded too clear, it must have been misunderstood.

However, later research convinced the Fed that effective interest rate policy requires transmission through financial markets, and clear communication can help markets better cooperate with the central bank, even helping the Fed achieve some of its goals.

Walsh has the unilateral authority to decide the frequency and content of his communications. What will he do? No one knows for sure. But economists almost unanimously believe that an era of reduced communication is imminent. Morgan Stanley’s Michael Gapen pointed out that this aligns with Walsh’s view that the Fed has been overly intervening in market dynamics.

Gapen cited examples: the Reserve Bank of Australia and the Swiss National Bank still maintain styles that surprise markets, and not all central banks are as willing to communicate as the Fed. But he also warned that reducing communication means the Fed must accept and endure higher volatility in equity and bond markets. There are no free lunches.

Market speculation suggests Walsh may reduce the number of press conferences. Current Chair Powell holds eight a year, while Walsh’s style may be more streamlined and less formulaic. Some analysts believe he may not immediately cut the quarterly economic forecasts, but reducing speeches during non-crisis periods might not be a bad thing.

After all, history shows that even with extensive communication, market expectations of Fed actions are often wrong. For highly liquidity-dependent assets like $BTC and $ETH, a quieter, more unpredictable Fed means each rate decision could feel more like opening a blind box.

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