US Treasury Secretary Scott Bessent Speaks About FED Chairman Nominee Kevin Warsh! “He Needs at Least a Year!”
US Treasury Secretary Scott Bessent commented on Federal Reserve chairman nominee Kevin Warsh.
US President Donald Trump has announced the successor to Jerome Powell, whose term as FED Chairman expires in May.
At this point, Trump nominated Kevin Warsh. While discussions continue about how Kevin Warsh will affect the markets, US Treasury Secretary Scott Bessent made important statements on the matter.
According to Reuters, Scott Bessent, speaking to Fox News, said that even if Kevin Warsh takes office, it could take up to a year for the Fed to decide on shrinking its balance sheet (quantitative tightening: QT).
Bessent stated that it would take at least a year to determine the direction of the Fed’s balance sheet in relation to a change in the reserve regime.
Bessent, also noting that Warsh would be a very independent Fed chairman, said, “How the Fed manages its balance sheet is up to the Fed. The Fed will probably need at least a year to determine its future direction to move away from the current reserve regime.”
As is known, during the global financial crisis and the COVID-19 pandemic, the FED significantly expanded its balance sheet (quantitative easing – QE) to lower long-term interest rates and increased its assets to $9 trillion by the summer of 2022.
Since then, through quantitative easing (QT), it has reduced this amount to $6.6 trillion by the end of last year. Despite this, it is still seen as a historically high level of assets.
Warsh, who served as a FED member from 2006 to 2011, argued that the FED should significantly reduce its holdings. However, President Trump is pressuring the FED to lower interest rates.
In contrast, experts point out that shrinking the Fed’s balance sheet (monetary tightening) tends to raise long-term yields, which is counterproductive. Therefore, it is predicted that a new Fed chairman will find it difficult to continue the balance sheet reduction process.
Bitcoin Treasury Company Strategy, Led by Michael Saylor, Ignores the Decline! Announces It’s Buying Bitcoin Again!
Strategy, a Bitcoin (BTC) treasury company led by Michael Saylor, announced it made new purchases despite the decline.
Strategy, a Bitcoin treasury company led by Michael Saylor, continued its purchases despite the decline.
According to an 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC), the company purchased an additional 1,142 BTC between February 2 and 8 for approximately $90 million. The average cost of this purchase was reported as $78,815 per BTC.
With this latest purchase, Strategy’s total Bitcoin holdings have risen to 714,644 BTC. The current market value of the BTC held by the company is approximately $49 billion, while the total cost, including fees, is stated to be $54.3 billion.
This table shows that, at current prices, Strategy carries approximately $5.1 billion in unrealized losses. Total assets represent more than 3.4% of Bitcoin’s 21 million supply.
The new acquisitions were reportedly financed with proceeds from an “off-market” (ATM) sale of Strategy’s Class A shares, ticker symbol MSTR. Prior to the purchase, Michael Saylor had given a traditional hint on social media with a post saying “Orange Dots Matter.”
On the other hand, the company reported a loss in the fourth quarter due to the impact of Bitcoin’s pullback on its balance sheet. Strategy CEO Phong Le argued at the earnings call that unless Bitcoin falls to $8,000 and remains at that level for 5-6 years, there will be no critical risk in paying off convertible debt.
Analysts, however, emphasize that despite using leverage, Strategy has structured its liabilities in a long-term and cautious manner.
🇺🇸 PRESIDENT TRUMP IS SET TO DELIVER A MAJOR ANNOUNCEMENT AT 5:30 PM
RATE CUTS AND A POSSIBLE RETURN TO MONEY PRINTING ARE EXPECTED TO BE ON THE TABLE.
MARKETS COULD SWING WILD — VOLATILITY INCOMING.
Big moment ahead 📈 If policy really pivots toward rate cuts and renewed liquidity, risk assets could get a serious tailwind.
If markets get easier money again, does capital rush back into growth and crypto immediately, or are investors still too cautious from the last cycle to fully lean in?
The US Treasury Secretary explained that the recent gold price volatility is linked to speculation in China.
Treasury Secretary Scott Bisent confirmed that traders in China were one of the main reasons behind gold's volatility last week, especially after a record-breaking rally followed by a sudden reversal.
What gold experienced was not just a normal price correction, but rather the result of a "classic speculative blow-off." Here are the key points he addressed:
Chaos in Chinese Markets: Bisent described the movements in China as "unruly," noting that traders there rushed to buy at record levels before being forced to quickly liquidate.
Tightening Margin Requirements: Bisent revealed that Chinese authorities (exchanges and regulators) have effectively intervened to raise "margin requirements"—the amounts speculators must pay to secure their positions—in order to curb excessive trading and high risk.
The relationship between gold, the dollar, and stocks: He pointed out that the decline in gold coincided with a strong rise in the US dollar and the Dow Jones index reaching an unprecedented historical high, surpassing the 50,000-point mark for the first time in history. This reflects a shift in investor appetite from safe havens to US assets.
The bottom line for investors:
Bessent's statements send a clear message that the US administration is closely monitoring Chinese cash flows and their impact on strategic commodities, and considers the current strength of the dollar to be the primary driver for the next phase.
Between Official Figures and Reality: Is "Truflation" Paving the Way for Kevin Warsh to Reshape the Fed?
In a stunning surprise to financial markets, data from the Truflation platform (which measures prices in real time) revealed a sharp drop in the US annual inflation rate to 0.68% by February 9, 2026. This figure not only falls short of the Federal Reserve's target of 2% but also places immense pressure on monetary policymakers, especially given the wide gap between it and the official Consumer Price Index (CPI), which remains around 2.7%.
Kevin Warsh: The Right Man at the Right Time?
This decline coincides with increased focus on Kevin Warsh, the leading candidate to succeed Jerome Powell as Chairman of the Federal Reserve in May. Warsh, historically known for his hawkish stance, now faces a historic test; analysts believe that current data may force him to adopt an unprecedentedly dovish approach.
Why is everyone watching Warsh now?
Administration confidence: He is seen as an ally of the current administration's vision, which calls for lower interest rates to stimulate growth.
Data flexibility: Some are betting that Warsh might rely on alternative, more modern indicators like Truflation to justify faster rate cuts.
Bold predictions: Major investment banks have begun speculating that Warsh could lead an interest rate cut of up to 1% before the end of 2026.
The pressure of "digital reality" versus "official data": The 0.68% figure is significant because it reflects the real prices consumers pay daily, unaffected by traditional government data delays. If official data (CPI) continues its downward trend, the Fed will be compelled to act to avoid the risk of deflation.
Market Pricing: Current forecasts indicate a high probability of two 25-basis-point interest rate cuts in the second half of 2026. However, the "Warsh surprise" could come in the form of an earlier timeline if US government data confirms this sharp decline.
🚨 IS KEVIN WARSH ABOUT TO FLOOD MARKETS WITH LIQUIDITY OR TRIGGER A BOND MARKET RISK?
Recently, the upcoming Fed Chair Kevin Warsh has called for a new FED TREASURY ACCORD, basically a framework that would decide how the Fed and the U.S Treasury work together on debt, money printing, and interest rates.
This is not only about rate cuts.
Yes, markets expect Warsh to support rate cuts over time, possibly bringing rates down toward the 2.75%–3.0% range.
But the bigger story is what happens behind the scenes.
Warsh has long argued that the Fed’s massive balance sheet, built through years of bond buying pulls the central bank too deep into government financing.
So his plan could involve:
- The Fed holding more short term Treasury bills instead of long term bonds.
- A smaller overall balance sheet.
- Limits on when large bond buying programs can happen.
- Closer coordination with the Treasury on debt issuance.
And this is where history matters. Because the U.S. has already done something very similar before. During World War II, government debt exploded from about $48 billion to over $260 billion in just six years. To manage borrowing costs, the Fed stepped in and controlled interest rates directly.
Short-term yields were fixed near 0.375% and Long-term yields were capped near 2.5%.
If yields tried to rise, the Fed printed money and bought bonds to push them back down. This policy is known as Yield Curve Control. It helped the government borrow cheaply during the war.
But it came with consequences.
Once wartime controls ended, inflation surged sharply. Real interest rates turned negative. And the Fed lost independence over monetary policy. By 1951, the system broke down and the famous Treasury Fed Accord ended yield caps.
China just ordered banks to totally cut U.S. Treasury exposure.
THIS IS A DOLLAR EXIT SIGNAL.
The Treasury market is the base layer of everything.
If confidence in that base layer gets weaker, the whole stack gets weaker.
This didn't start today. It's been building for years.
China's U.S. Treasury holdings:
- Nov 2013: $1.316 TRILLION peak
Then the exit started.
- Jun 2019: Japan passed China as the top foreign holder - May 2022: $980B, one of the lowest levels since 2010 - Nov 2025: $682B, the lowest since Sep 2008
Now connect the dots.
From $1.316 TRILLION to $682 BILLION is not noise. It's a plan.
And the plan is simple.
- STEP BACK FROM U.S. DEBT. - STEP UP CONTROL AT HOME. - REDUCE DOLLAR RISK.
That one fact explains a lot.
Because when a buyer this big steps back, yields jump.
When yields jump, liquidity gets low.
When liquidity gets low, risk gets smoked.
THIS IS NOT GOOD AT ALL.
So what happens next?
The Treasury market needs a new marginal buyer. And usually that means higher yields.
Higher yields do one thing.
- They raise the cost of money. - They pull liquidity. - They squeeze risk.
BREAKING: China has told domestic banks to stop adding and begin reducing exposure to U.S. Treasuries.
This removes a steady source of foreign demand for U.S. government debt. Lower external demand for Treasuries can push yields higher and increase U.S. borrowing costs over time.
I don’t think you guys understand what an actual bull market looks like.
Every single altcoin on a CEX 5-50% up on the day.
Persistently rotating for 3-5 days, a quick 24h correction, then back at it again. This goes on for 3-4 months.
BTC starts ripping so hard it freezes the whole market.
Alts just sit there, waiting for BTC to take a breather, then they absolutely send it.
ETH steps in like it’s got something to prove—pumps so hard it feels like a meme coin getting shilled by some insider crew.
Altcoins? They’re not just having days; they’re having weeks and months of straight-up insanity.
Yeah, there are brutal corrections. They wipe out the leverage mfs, but spot? Spot holders are chilling. You’re watching your bags turn into stuff you never thought you’d own—watches, cars, boats, maybe even a damn island if you’re playing it right.
This time isn’t any different. Sure, the downside’s 50%, maybe 70%. Boo-hoo. But the upside? It’s generational wealth. The kind that makes people look at you different.
🚨Currency coins that are going to zero, you must get rid of them!🚨
Four days ago, Ethereum founder Vitalik criticized Layer 2 projects, claiming they were finished and that Layer 1 would do everything on its own. But first, what exactly are Layer 1 and Layer 2, and what's the story behind them? Read on 👇
📍Layer 1 projects, or the first layer, are independent blockchains that can be used to create applications, issue tokens, process transactions, and more.
Examples include ETH, BTC, and BNB.
📍Layer 2 projects, on the other hand, are like a secondary network for the first layer. Their purpose is to improve the performance of the first layer, such as facilitating transactions with lower fees and making it more scalable.
📍Vitalik attacked Layer 2 projects on Ethereum, saying they weren't fulfilling their primary purpose. He argued that Ethereum is expanding and developing on its own, and gas fees are decreasing without Layer 2's help. He also stated that the future of Layer 2 isn't in financial applications, but rather in other areas like artificial intelligence, social media, and more.
The most famous Layer 2 projects on Ethereum These include: arbitrum, polygon, optimism, and many others. Vitalik has criticized all these projects, so their future will be bleak, and you should think twice before remaining invested in them. 👌🔻
What we are currently witnessing is a strong upward breakout of USDT's dominance, not driven by genuine strength, but rather by a wave of collective fear that has prompted investors to hedge heavily.
🔹 Dominance has reached levels not seen since June 2022
🔹 During that period, the market lost more than 60% of its value
🔹 Following this, we entered a strong rally in altcoins
The similarities between the two periods are clear:
- A sharp rise in USDT.D due to panic - A drain on selling liquidity - Then a gradual reversal as risk appetite returns to the market
This behavior, supported by several technical and time indicators, reinforces the scenario of USDT dominance peak formation.