The credibility risk of Federal Reserve officials is becoming a focal point of market attention. On the surface, these recent events have only triggered short-term volatility, but the deeper issue lies in a crisis of institutional credibility.

When the accuracy of central bank policymakers' testimony is questioned, the effectiveness of the entire policy transmission mechanism is undermined. Investors' confidence in policy expectations is shaken, which can have a ripple effect on dollar-denominated asset allocations.

Although the market appears to have absorbed the emotional shock, similar institutional risks are often chronic. When new evidence emerges, it could reignite doubts about the transparency of the entire financial system. This introduces uncertainty into the price expectations of crypto assets that rely on dollar stability—especially when policy signals are inconsistent during critical time windows (such as mid-2025).

In the long term, such events force the market to reassess the trust costs associated with traditional financial institutions, which is also one of the reasons why the decentralized philosophy of Web3 continues to gain attention.