White House economic adviser Hassett has recently stated that the Federal Reserve should consider cutting interest rates cautiously.

It’s worth noting that he is likely a strong contender for the next Fed chair. The timing of his remarks is intriguing—the market’s expectations for rate cuts are heating up again, which is no small matter for risk assets.

Once the rate-cut cycle begins, expectations of looser liquidity will directly affect capital flows. The crypto market has always been sensitive to Fed policy, so it’s likely we’ll need to keep a close eye on the FOMC meetings in the coming months.