Wall Street on Alert as Trump’s New Power Duo Could Ignite a Bitcoin Supercycle

Core Viewpoint - The potential appointment of Kevin Hassett as Fed Chair alongside Treasury Secretary Scott Bessent could significantly alter U.S. monetary policy, impacting risk assets like stocks and Bitcoin while affecting savers and bondholders [1][2]. Group 1: Impact on Monetary Policy - The Bessent-Hassett duo may represent a fundamental shift from the post-2008 monetary regime, transforming the Federal Reserve into a liquidity tool aligned with Treasury policy [2][3]. - This alignment could prioritize growth over austerity, reminiscent of the 1940s and 1950s, potentially benefiting risk assets such as Bitcoin [3][5]. Group 2: Economic Growth Projections - Bessent predicts GDP growth of 4% or more in Q1 2026, driven by strong consumer activity and favorable macroeconomic trends [5]. - The sentiment suggests that coordinated policy efforts could enable economic growth, as shrinking a large debt load may not be feasible without risking systemic issues [5]. Group 3: Market Sentiment - Hassett has shown extreme bullishness towards equities and Bitcoin, being referred to as a "turbo dove" for risk assets by industry insiders [6].