Trump Shortlists Five for Fed Chair Nomination
President Donald Trump has narrowed his list of candidates for the next Federal Reserve Chair, confirming five finalists: governors Christopher Waller and Michelle Bowman, former governor Kevin Warsh, NEC Director Kevin Hassett and BlackRock’s Rick Rieder. The Fed Chair nomination is set to conclude after Thanksgiving, coinciding with the Fed’s October 29 meeting where markets anticipate a 25-basis-point rate cut. The Fed Chair nomination will shape U.S. monetary policy, influencing interest rates, liquidity and inflation outlook. A dovish appointee could accelerate rate cuts, boosting liquidity and fueling crypto demand, while a hawkish choice may tighten policy and dampen risk appetite. Crypto traders should monitor the Fed Chair nomination and rate cut signals for insights into market volatility and potential trading opportunities.
Bullish
The Fed Chair nomination and anticipated dovish shift with expected rate cuts are likely to increase liquidity, reduce borrowing costs, and encourage risk-taking in crypto markets. Historically, Fed easing cycles have supported rallies in Bitcoin and altcoins. In the short term, nomination-driven volatility may prompt trading opportunities, but overall lower rates tend to be bullish. Thus, the news is a bullish catalyst for crypto assets.