Fed policy shift countdown: Inflation data falls, next chair candidate becomes the focus

Recently, a report shows that the three-month moving average of core inflation in the United States has dropped to 1.6%. This figure is actually quite crucial for the market—because it directly affects the Fed's subsequent policy path.

It is worth noting that there is considerable controversy over the current candidates for the Fed chair position. When selecting the next leader of the Fed, Trump has clearly indicated a preference for candidates who rely more on data-driven decision-making rather than rigid policy implementers. In other words, what the market needs is a decision-maker who can flexibly adjust interest rates based on actual economic trends.

What does this mean for the cryptocurrency market? The policy direction of the Fed often determines the level of macro liquidity, which directly reflects on the allocation of assets. The continuous decline in inflation + the change in the attitude of policymakers, these two factors combined may redefine the market rhythm in the coming months.