Trump's words made the global market uneasy.

Last Sunday on Air Force One, Trump tossed a line to reporters: "I know who I'm going to choose as the Fed chairman, and I will announce it soon." Although he didn't specify who it was, everyone guessed it - Kevin Hassett, the director of the White House National Economic Council, is most likely the next leader.

Hassett later stated on television that the market reaction has been "very positive". This statement sounds polite, but the underlying meaning is clear — capital has already begun to place bets.

The market is already moving.

After the news was released, the 10-year US Treasury yield fell below 4% directly. What does this mean? The market is anticipating a rate cut.

The logic is simple: Hasset comes to power → the probability of interest rate cuts increases → borrowing costs decrease → more funds flow into high-risk assets. In the short term, this is a positive signal for both the cryptocurrency and stock markets.

But I have to tell the truth - don't get too happy too soon.

Hassett may indeed bring short-term benefits, but he may also become the "most spineless chairman" in the history of the Federal Reserve.

Why? Because he is too close to Trump. Once the independence of the Federal Reserve is weakened and it becomes a mouthpiece for the White House, it will definitely not be a good thing in the long run.

Imagine this: if inflation rises again and the Federal Reserve doesn't dare to tighten policies due to political pressure, what will the result be? After a short-term euphoria, there could be a long-term pain to pay.

What should retail investors do now?

Keep an eye on the yields of U.S. long-term bonds. Once it starts to soar, it indicates that market concerns about inflation are intensifying, at which point caution is warranted.

Don't put all your positions in, leave some cash to cope with fluctuations. Market changes rapidly, and cash is the best safety cushion.

This round of policy games has just begun; observation is more important than impulse.