Waller Tops Fed Chair Race, Backs Rate Cuts, Stablecoins
Fed governor Chris Waller has emerged as the leading contender to succeed Jerome Powell as Fed Chair, with Polymarket odds around 45%. He dissented at the last FOMC meeting, voting for an immediate 25bps rate cut, reflecting political momentum for easing strengthened by former President Trump’s criticism of high rates. A PhD in monetary theory, Waller built the FRED database at the St. Louis Fed. He views most cryptocurrencies as speculative “trading cards” but champions regulated stablecoins for payment efficiency and global dollar expansion, urging Congress to legislate stablecoin reserves and prevent runs. Waller also recognizes DeFi’s benefits, such as 24/7 settlement and smart-contract automation. If confirmed, the new Fed Chair could accelerate rate cuts once inflation cools, boosting liquidity and risk assets. His pro-stablecoin stance and clearer crypto regulation may reduce policy uncertainty and support a bullish crypto market outlook. The current crypto market cap stands at $3.87 trillion with daily volume of $174.14 billion; traders should watch tokens poised for compliant tokenization.
Bullish
Chris Waller’s front-runner status for Fed Chair, combined with his insistence on rate cuts and regulated stablecoins, is likely to boost liquidity and lower policy uncertainty—key drivers for risk‐asset flows. In the short term, traders may see a rally as markets price in faster easing and clearer crypto rules. Over the long term, Waller’s support for stablecoin legislation and DeFi frameworks could spur compliant tokenization, enhancing institutional participation and sustainable growth in the crypto market.