Trump to Announce Next Fed Chair as Pro-Crypto Waller Gains Ground

U.S. President Donald Trump has announced that he will reveal his choice for the next Federal Reserve chair as early as next week, intensifying pressure on current chair Jerome Powell and reigniting debates over interest rate policy. The announcement came during a recent cabinet meeting and was echoed by Treasury Secretary Scott Bessent, who confirmed that a decision on Powell’s successor is imminent.

Trump once again criticized Powell for refusing to cut interest rates, arguing that the Federal Reserve should lower rates by two to three percentage points immediately. According to the president, inflation is no longer a major concern, and maintaining current rates is hurting the U.S. economy. His comments followed the latest Federal Open Market Committee meeting, where the Fed opted to keep rates unchanged after implementing three cuts last year. Powell indicated that policymakers are in no rush to reduce rates further, citing a stabilizing labor market and inflation that remains somewhat elevated.

Market participants, including crypto traders, are closely watching the situation. Many are pricing in the possibility that interest rates will remain steady until June, when Powell’s term as Fed chair ends. However, Trump’s insistence that the next Fed chair should move quickly to lower rates has fueled speculation that a rate cut could occur as soon as the June meeting. Polymarket data currently suggests a 70% probability of a rate cut by then, a scenario that could significantly impact financial markets and the crypto sector.

Meanwhile, Fed Governor Chris Waller, known for his relatively pro-crypto stance, is gaining momentum in the race to succeed Powell. His nomination odds on Polymarket climbed from about 8% before the recent FOMC meeting to roughly 14%, following his dissent in favor of a 25 basis point rate cut. Despite this rise, BlackRock CIO Rick Rieder remains the frontrunner with a 38% chance, followed by former Fed Governor Kevin Warsh at 30%. Political hurdles remain, however, as some senators have pledged to block confirmation until ongoing investigations involving Powell are resolved.