The recent personnel adjustments in the Federal Reserve System have become the focus of market discussions, reflecting a deep game of power and policy direction regarding regulatory authority.

In May of this year, Federal Reserve Chairman Jerome Powell sent a memo to all system employees announcing a significant personnel plan: to cut about 10% of the workforce in the coming years. According to the data from the 2023 annual report, the Federal Reserve System has approximately 24,000 employees, which means nearly 2,500 people will face layoffs, reducing the workforce back to levels seen a decade ago.

More aggressive measures emerged in October. Federal Reserve Vice Chair for Supervision Michelle Bowman announced that the banking regulatory agency plans to reduce its workforce by 30% by the end of 2026, leaving approximately 350 employees. This series of actions clearly sends a signal: institutions are actively adapting to the current policy environment to avoid more drastic external interventions.

At the same time, interest rate policy is also shifting. On September 17, the Federal Reserve announced a 25 basis point cut to the federal funds rate during its monetary policy meeting, lowering the target range to 4.00%-4.25%. This is the first interest rate cut since December of last year. Powell emphasized after the meeting that this decision was entirely based on economic data and was unrelated to political factors. However, the market generally understands that the initiation of this rate-cutting cycle is inextricably linked to changes in the overall policy environment.

For participants in the cryptocurrency market, these changes are worth paying attention to. The Federal Reserve's expectations for easing, the reduction of regulatory pressure, and adjustments in the policy environment may all affect the performance of assets such as BTC, ETH, BNB, and market sentiment. A cycle of interest rate cuts typically releases more liquidity, which often creates favorable conditions for high-risk assets.