Recently, the market has been abuzz with rumors that White House economic adviser Hassett strongly supports rate cuts. Coupled with Trump frequently hinting that he might appoint him as the next Fed Chair, many people have started fantasizing about a new era of monetary easing. BTC and ETH have also seen a small uptick in response to these expectations.

However, Deutsche Bank recently poured cold water on this optimism—saying that even if Hassett does take the position, cutting rates won't be that easy. Their reasoning is: by mid-2026, the fundamentals of the US economy likely won't support aggressive rate cuts, and the hawks within the Fed won't easily give in either. More importantly, Hassett himself said in an interview that decisions have to be "data-driven" and consensus must be reached with the rest of the committee. This sounds pragmatic and is completely different from the aggressively dovish stance the market is imagining.

To put it simply, the market's expectations for easing policies might be too optimistic right now. Monetary policy is never decided by one person—economic data and internal negotiations are what really matter. If you bet everything on rate cut expectations, the risks are actually quite high. After all, when it comes to policy shifts, there's often more talk than action.