The former New York Fed Chair Dudley recently publicly stated that although the market is focused on how Trump will change the Fed Chair, the real trouble is far more than that. Next year (2026), the Federal Reserve will face six hurdles.

The first is independence. The risk of presidential interference is increasing, which directly relates to whether the Fed can independently set policy—essentially a battle for influence.

The second is the direction of interest rates. Maintaining a neutral rate level seems simple, but in practice, it is very complex. Whether to raise or cut rates, each step affects market expectations.

The third is the balance sheet. The Fed needs to continue buying US Treasuries to support the market, but how to control risks and avoid excessive leverage is a balancing act.

The fourth is banking regulation flaws. Recent issues exposed require reforms to follow up, and the vulnerabilities in the financial system must be addressed.

The fifth is stablecoins. As a new entity, their account functions are limited, and the regulatory framework is still imperfect, making it a tricky problem.

The sixth is the communication mechanism of monetary policy. Every statement from the Fed can stir market waves, and clarity in communication needs improvement.

These six challenges span political, economic, and financial dimensions, with considerable depth and breadth. How the new Chair responds will directly determine the market's future direction. For those of us paying close attention to macro liquidity, these developments must be closely monitored.