Trump to Name Fed Chairman Before Christmas; Hassett Leads
President Trump is expected to announce his nominee for the next Fed chairman before Christmas, with White House Chief Economic Advisor Kevin Hassett emerging as the frontrunner. The selection, led by Treasury official Scott Bessent, has reduced the list to five candidates: Hassett, former Fed governor Kevin Warsh, sitting governors Christopher Waller and Michelle Bowman, and BlackRock’s Rick Rieder. A decision is likely between Thanksgiving and December 25. Hassett, a long-time Trump adviser, advocates aggressive rate cuts and has criticized what he sees as the Fed’s slow and politicized policy adjustments. His potential appointment as Fed chairman could shift Federal Reserve policy toward a more dovish stance, accelerating rate cuts. This development may prompt speculation in crypto markets and cryptocurrency trading. Traders in the crypto markets and cryptocurrency trading could benefit from looser monetary policy, which historically boosts liquidity and asset prices. However, concerns over Fed independence and possible political influence may add volatility.
Bullish
Trump’s likely appointment of Kevin Hassett as Fed chairman signals a potential shift toward more aggressive rate cuts and a dovish Federal Reserve policy. Historically, dovish pivots by the Fed have led to increased liquidity and bullish runs in risk assets, including cryptocurrencies. For instance, the 2019 Fed rate cuts preceded a surge in Bitcoin and altcoins. In the short term, traders may increase positions in crypto markets anticipating easier monetary policy. Over the long term, sustained dovishness could support higher valuations across digital assets. However, concerns over Fed independence and political intervention might introduce volatility, as seen in past episodes when policy decisions appeared politically driven.