Trump Prepares Federal Reserve Chair Decision Amid Pressure for Lower Rates

2 mins mins

Key Points:

Trump decides on Federal Reserve chair nominee in market-shifting move.
Decision underpins push for significant rate cuts.
Potential implications for Bitcoin and other risk assets.

U.S. President Trump, in a recent interview, confirmed selecting a successor for Federal Reserve Chair Jerome Powell, pending an announcement amidst pivotal economic policy pressures.

Trump’s decision, influenced by his advocacy for lower interest rates, could significantly impact markets, particularly cryptocurrencies, given their sensitivity to policy shifts.

Trump’s Fed Chair Nominee Decision Stirs Economic Speculation

The probability markets indicate Kevin Warsh, Kevin Hassett, and Christopher Waller as frontrunners for the position. The pressure for a more dovish monetary policy could have substantial effects on the economic landscape, affecting both traditional and crypto markets. President Trump’s public criticisms of Jerome Powell emphasize the importance of this appointment.

Kalshi’s prediction market places Kevin Warsh at 41% and Kevin Hassett at 39%, reflecting the market’s viewpoints on potential outcomes. These figures highlight how aligned candidate views could impact future monetary policy. The emphasis on a dovish shift stems from the administration’s aim to stimulate economic growth and investment.

Jerome Powell has been too late to act on interest rates, and the cost of the Fed’s building renovation is nothing short of a disgraceful waste of taxpayer money. — Donald Trump, U.S. President

Bitcoin Market Dynamics Amidst Potential Federal Reserve Changes

Did you know? Historically, lower interest rates have been associated with higher Bitcoin and Ethereum performance.

Bitcoin (BTC) stands at $91,070.02, with a market cap of 1.81 trillion and dominance at 58.54%, according to CoinMarketCap. Trading volume decreased by 39.82% over the past 24 hours. Price changes include a 24-hour drop of -0.12%, alongside longer-term fluctuations.

bitcoin-daily-chart-5495 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 00:11 UTC on January 9, 2026. *Source: CoinMarketCap*

Analysts from the Coincu research team note that Trump’s decision could influence monetary policy favoring lower interest rates. Such an environment historically supports higher BTC and ETH performance, affecting risk asset valuations broadly. Economic and financial shifts remain closely monitored.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.