Trump Starts Fed Chair Selection; NVIDIA H20 as Trade Tool
President Trump has officially launched the Fed chair selection after Scott Bessent volunteered and was quickly ruled out. Trump praised Jerome Powell’s performance and now favors NEC head Kevin Hassett or ex-Fed governor Kevin Warsh, both seen as supporters of aggressive rate cuts and flexible interest-rate policy.
In parallel, Treasury Secretary Scott Bessent confirmed that lifting the export ban on NVIDIA H20 chips became a key trade leverage in US–China negotiations. He expects talks to focus on market opening, boosting domestic consumption and securing further concessions. Bessent also lauded the “maximum pressure” tariff strategy, noting deals with the UK, Europe and Japan.
Bessent stressed that the inflation trend matters more than isolated data points. He reaffirmed central bank independence and ruled out combining Fed and Treasury roles.
This intersection of Fed chair selection, monetary policy and US–China trade dynamics may reshape liquidity and risk appetite, driving volatility in global markets and presenting new trading opportunities for cryptocurrency investors.
Bullish
By accelerating the Fed chair selection process in favor of candidates likely to pursue aggressive rate cuts and flexible interest-rate policy, the administration signals a potential shift toward looser monetary policy. This outlook could boost liquidity and risk appetite, offering positive momentum for cryptocurrencies. Although US–China trade negotiations and tariff strategies may introduce bouts of volatility, the prospect of easier monetary conditions and stable inflation trends should support longer-term growth in crypto markets, making this news overall bullish for traders.