#Gate13周年现场直击

What did Fed Chair candidate Wash say?

Last night, besides whether the U.S. and Iran will restart hostilities, the event drawing the most attention from global investors was Kevin Wash’s performance at the U.S. Senate hearing—he is the nominee for Fed Chair. His first official appearance as the next head of the Federal Reserve directly shapes the direction of the United States’ future monetary policy. Let’s take a look at what he said.

Kevin Wash clearly promised that monetary policy will be independent from politics, emphasizing that low inflation is the Fed’s “protective shield.” At the Senate hearing, he reiterated that when setting policy, he will not be influenced by President Trump or other elected officials, and that ensuring price stability is his core mission.

🔍 Core Positions and Policy Proposals

‌Independence of Monetary Policy‌

Wash said that the Fed’s independence “largely depends on whether it can achieve its goals,” and emphasized: “Inflation is a choice, and the Fed must take responsibility for it.” He sees maintaining low inflation as a key barrier to protecting the central bank’s credibility.

‌Rejecting “Puppet” Questions‌

When directly asked by a senator whether he would act as a “puppet for the president,” Wash replied: “If confirmed, I will be an independent actor.” He made it clear that the president has never asked him to commit to specific interest-rate decisions, and even if that were proposed, he would never agree.

‌Reform Guidance-Forecasting Ahead of Time Mechanisms‌

Wash criticized the current Fed’s overreliance on “forward guidance.” He believes that disclosing interest-rate forecasts in advance will cause officials to cling to outdated judgments and miss opportunities to respond to new economic data. He argues for making decisions immediately during meetings rather than following a pre-set path.

‌Impact of AI and Productivity on Policy‌

Although he had previously supported rate cuts based on AI improving productivity, he did not repeat this view at the hearing. Instead, he only stressed that this is the “most disruptive moment in modern economic history,” implying that the policy framework needs to be reassessed.

‌Balance Sheet and Institutional Reform‌

He argues for reducing the Fed’s massive U.S. Treasury holdings, saying they have too strong a presence in financial markets. He also calls for institutional change to prevent the central bank from overstepping into non-core issues such as climate change and social fairness.

In addition, Wash hinted that he has very little concern about further opening the U.S. banking system to cryptocurrencies. Wyoming Republican Senator Cynthia Lummis asked Wash whether, “should digital assets be integrated into our financial industry so that Americans can gain new investment opportunities and consumer rights protection.”

Wash responded: “Cryptocurrencies have already become a structural part of the U.S. financial services industry—yes.”

The Federal Reserve’s latest annual Survey of Household Financial Conditions shows that in 2024, only 8% of American adults reported having used cryptocurrencies, down from 12% in 2021. Among them, most people hold cryptocurrencies as investment assets, with only 2% using them for shopping or payments.

Wash’s financial disclosure documents show that he holds shares in more than ten cryptocurrency companies and trading platforms.

Here’s the question: after Trump, will the U.S. be getting another official who supports cryptocurrencies? Will Wash’s remarks be bullish for Bitcoin? Drop your thoughts in the comments, everyone!