The senior officials of the U.S. Department of the Treasury recently sent a significant signal — the selection process for the new Federal Reserve Chair is underway with great urgency. Moreover, based on the information disclosed, this personnel change hints at a profound reflection on the past 15 years of monetary policy.

According to reports, the head of the Treasury Department bluntly stated during a recent industry dialogue: the new Federal Reserve Chair must undertake a mission — to narrow the Fed's power scope and put an end to the era known as "perpetual quantitative easing." In other words, the days of large-scale money printing and unlimited liquidity may be coming to an end.

What is the logic behind this shift? Treasury officials offered a sharp critique: the Fed's policies over the past decade have actually become a "driver of income inequality." How exactly was this achieved? By artificially lowering interest rates and purchasing trillions of dollars in assets, the Fed inflated the prices of stocks, real estate, and other assets. The result? Asset owners saw their wealth significantly increase, while ordinary people without assets were left further behind. This has created a "dual economy" — you are either an asset holder or an observer.

The Minister also touched on a sensitive topic: the Fed's so-called "Modern Monetary Theory" operations, essentially helping the government print money to cover fiscal deficits. This is taboo in traditional financial theory, but it has indeed been happening. One of the tasks for the new Chair is to restore quantitative easing to its original role as an "emergency tool," rather than making it a routine operation.

Beyond monetary policy direction, reforms also involve the internal structure of the Fed. The Minister bluntly stated: this institution is too bloated, lacks budget constraints, and its operational fiscal discipline is far below that of other government agencies. Simply put, the Fed needs to "slim down" and "standardize."

So who might be the next Chair? The Minister revealed that current popular candidates include Waller, Haskett, and the incumbent Fed Governor Waller. What do these individuals have in common? They all agree on a core principle: the Fed should return to its fundamental functions — maintaining price stability and not trying to manipulate the entire economy through monetary policy.

The Minister even hinted that the new Chair should help the Fed step back from the spotlight. Currently, markets are extremely sensitive to every word from the Fed Chair, with dramatic fluctuations. But an ideal state would be for Fed decisions to be more predictable, rather than keeping the entire market on edge waiting for the Chair's speech.

What do these signals of reform mean for the crypto market? First, if the Fed truly tightens liquidity and halts large-scale asset purchases, it will inevitably impact the pricing logic of risk assets, including cryptocurrencies. Second, the shift in interest rate policy will change arbitrage opportunities. Third, it reflects a fundamental shift in macroeconomic policy thinking — from a "rescue" mode to a "market discipline" mode. For those long-term optimistic about the crypto market, it is necessary to re-understand the opportunities and risks in this new environment.