Former US President Donald Trump is expected to announce his preferred candidate for the next Federal Reserve Chair as early as next week, according to US Treasury Secretary Scott Bessent. The decision is still under evaluation but could significantly influence US monetary policy, interest rates, and financial markets, including cryptocurrencies such as Bitcoin and Ethereum.
Several prominent figures are reportedly under consideration, with Trump already said to have a favorite in mind. Leading candidates include Rick Rieder of BlackRock and current Federal Reserve Governor Christopher Waller. Trump is believed to be personally involved in the selection process, prioritizing a nominee who aligns with his pro-growth economic agenda.
The choice of a new Fed Chair is critical because the role holds enormous influence over the US economy. A new leader could shift the central bank’s approach to interest rates, inflation control, and liquidity policy. Historically, Trump has favored lower interest rates to stimulate economic activity, suggesting a potential move toward a more accommodative monetary stance.
Financial markets—especially risk assets—are watching closely. Lower interest rates generally support assets like stocks and cryptocurrencies, which tend to perform better in looser monetary environments. Bitcoin, in particular, has often benefited from periods of monetary easing as investors seek higher returns outside traditional assets.
Trump’s past relationship with the Federal Reserve also shapes expectations. He has been a vocal critic of current Fed Chair Jerome Powell, arguing that rate cuts have been too cautious. Any nominee will still need Senate approval, making political balance crucial. Analysts note that such appointments during key economic transitions often have lasting effects on both traditional and digital asset markets.
