US President Donald Trump said the next Federal Reserve chairman “believes in a significant rate cut,” Reuters reports. He also confirmed that he will name a leading candidate for the job in early 2026.
Speaking to the press, the president stated the following:
“I’ll soon name the next head of the Federal Reserve, someone who believes in a significant reduction in interest rates. And as a result, mortgage payments will fall even further. […] I’ll do this in early 2026.”
The politician made this announcement shortly after an interview with one of the candidates for Federal Reserve Chairman, Christopher Waller, according to The Wall Street Journal . Prior to that, he had spoken with Kevin Warsh.
Previously, National Economic Council Director Kevin Hassett was considered the leading contender for the next Fed chairman. Trump later stated that he was satisfied with Warsh and that he and Hassett were tied for first place on the list.
Both candidates are highly regarded in the crypto community. They both support Trump’s policies and advocate for the Fed to adhere to the president’s policies.
Waller, for his part, advocates for the regulator’s independence, as he stated in a comment to CNBC. Given this, his chances of being elected are not considered particularly high. The remaining two candidates are BlackRock Fixed Income CIO Rick Rieder and Fed Vice Chair for Supervision Michelle Bowman.
As a reminder, the Federal Reserve cut its interest rate by 0.25% at its last meeting. However, Jerome Powell, the current head of the Fed, noted that further policy easing is not guaranteed.
The Fed’s stance directly impacts high-risk assets in general, and Bitcoin in particular. As LVRG Research Director Nick Rooke noted in a commentary for The Block, Bitcoin’s volatility is driven by a general decline in investor risk appetite, a decline in capital inflows into crypto ETFs, and a growing correlation with the stock market.
The current position of Bitcoin indicates a rebalancing of portfolios and a reduction in expectations regarding the “Christmas rally,” the expert emphasized.
The Fed’s neutral stance in January could lead to further consolidation, while a further cut could lead to growth. Against this backdrop, the close attention to the choice of Powell’s successor is understandable.
Commenting on his interview with Warsh, Trump noted that within a year, he would like to see interest rates at 1% or even lower. He believes this will reduce the cost of servicing the US national debt.
