🔁 A New Fed Chair on the Horizon
Markets are already positioning for a post-Powell era at the Federal Reserve.
A more dovish Fed Chair in 2026 would likely push for:
Lower benchmark interest rates
Easier financial conditions
Relief for housing and credit markets
👉 Historically, leadership changes at the Fed often reshape policy direction.
📉 Mortgage Rates Are Rolling Over
After peaking at multi-decade highs:
Mortgage costs are cooling rapidly
Housing affordability is slowly improving
Pent-up demand could re-enter the market if rate cuts accelerate
Lower rates = higher home activity = stronger economic momentum.
📊 Jobs Data Still Holds the Key
The US Nonfarm Payrolls remains the Fed’s north star:
Slowing job growth → supports rate cuts
Softening labor data → bullish for risk assets
🧱 Policy Wildcards
Donald Trump-linked tariff discussions could add inflation volatility
Trade policy uncertainty may push the Fed to offset with looser monetary policy
🚀 WHY MARKETS LIKE THIS
Lower rates → cheaper leverage
Housing recovery → economic tailwind
Liquidity rotation → risk assets outperform
🪙 Crypto Angle
Macro easing historical benefits:
Liquidity doesn’t disappear — it rotates.
🧠 Bottom Line
If rate cuts + housing reform momentum align into 2026, the setup is structurally bullish across:
