White House economic adviser Hassett just dropped a bombshell—he publicly called for the Federal Reserve to cut rates by 25 basis points next week. As someone seen as a Trump confidant and rumored to be a potential Fed chair successor, this statement is anything but simple.

Hassett revealed that most Fed members now lean toward rate cuts, with the long-term goal of driving rates down. However, he left himself some wiggle room: if the committee consensus is 25 basis points, then start with 25. When pressed by reporters about the frequency of future cuts, he said, “It depends on the data.” This combination move is quite clever—it sends a dovish signal while still maintaining the appearance of central bank independence.

But Deutsche Bank quickly poured cold water on the idea: Even if Hassett really becomes Fed chair in 2026, the road to rate cuts won’t be smooth. By then, economic data may not support aggressive easing, and with plenty of hawks inside the Fed, slashing rates won’t be easy.

For the crypto world, this news needs to be viewed dialectically. The market is currently pricing in strong expectations for rate cuts, so beware of the “buy the rumor, sell the news” effect. If there really is a cut next week, Bitcoin and altcoins could see a short-term rally; but if the Fed’s tone is hawkish even as it cuts, the market could just as easily reverse and sell off.

Trump has already said he’ll announce his pick for Fed chair in early 2026, and Hassett is currently highly regarded by him. If this “insider” really takes the position, long-term policy could lean dovish, but in the short term, it’ll still depend on hard data.

Rate cut expectations are heating up, but don’t get too excited before they materialize. In trading, the worst thing is to treat a one-sided narrative as gospel. Stay flexible, and don’t bet your whole position on a single story.