Will President Trump Name The New Fed Chair Before Christmas?

The US President, Donald Trump, has criticized Fed Chair Jerome Powell on multiple occasions. Recently, at a US-Saudi investment forum, Trump called Powell “grossly incompetent”. He also said, “I’d love to fire him”, blaming him for not cutting interest rates aggressively.

The Treasury Secretary, Scott Bessent, also attended the Saudi-backed investment forum. The US President urged him to speed up the search for the current Fed Chair’s successor.

Jerome Powell has avoided aggressive rate cuts to limit inflation and financial bubble risks. He also wants to protect the Fed’s credibility. His term will be over in May 2026, but he will continue to serve on the Fed’s Board of Governors until January 31, 2028.

Who Could Be the Next Fed Chair?

According to Trump, Jerome Powell is not fit for the job. He continues to slate the Fed Chair’s approach and wishes to replace him as soon as possible.

Scott Bessent recently stated that the President is going to meet three finalized candidates after Thanksgiving. He could choose the new Fed Chair before Christmas.

So, who might be the shortlisted candidates? Experts believe the new Federal Reserve Chair will certainly be a crypto-friendly personality.

Christopher Waller, currently serving as a Fed Governor, is at the top of most people’s list. He supports rate cuts and is famous for the low idle policy. Therefore, he could be President Trump’s top pick as the new Fed Chair.

Michelle Bowman, who Trump appointed to the Board of Governors, could also assume the role of Fed Chair. She is currently serving as the Fed’s Vice Chair and previously served as the state banking commissioner of Kansas.

She has supported rate cuts and was not in favor of keeping rates steady in July. Kevin Warsh was a Fed Governor when the Great Financial Crisis hit the world.

He could have been the Fed Chair in 2017, but Powell got the job. This time, he could be the top pick for the job as he currently seems in favor of lowering the rates.

Kevin Hassett and Rick Rieder could also be among President Trump’s shortlisted candidates for the Fed Chair position. Whoever is appointed will face heightened expectations to deliver on Trump’s preferred monetary direction.

What Does President Trump Expect the New Fed Chair to Do?

The US President has repeatedly stated that he is not going to choose anyone who is against cutting rates. He has even pushed for a big cut. Trump believes that lower rates will support his economic agenda, especially amid the current tariff policies.

The US President has pursued an aggressive tariff policy. He has used tariffs as a key tool in his foreign and economic policy strategy. Lower rates ease borrowing costs. Therefore, Trump believes the US Fed can mitigate near-term economic risks stemming from trade tensions.

The next Fed Chair is expected to share much of Trump’s economic worldview. Several potentially shortlisted candidates are known to favor rate cuts and have shown more openness toward digital assets than Jerome Powell. The right candidate could certainly pave the way for more crypto-friendly monetary policies.

Why a Pro-Crypto Fed Chair Matters for Investors?

The Federal Reserve does not regulate cryptos. However, its monetary policies can influence risk appetite, market liquidity, and institutional behavior. A pro-crypto Fed chair could support a clearer regulatory framework.

By maintaining lower or stable interest rates, a pro-crypto chairman can indirectly support solid capital flows into digital assets. As borrowing costs decrease, traders and institutions may invest in high-risk, high-return assets, such as cryptocurrencies, to generate higher profits.

Institutions may feel more confident in allocating crypto products if the new Fed Chair supports crypto infrastructure. Such a stance could encourage broader adoption and investment in digital assets.

Since institutions invest with long-term strategies, their participation will reduce extreme market volatility. There will be fewer chaotic drops, and price behavior will be more predictable.

Scott Bessent told Fox News that the President could announce the new Fed Chair before Christmas. If the next Fed Chair is a pro-crypto candidate, it would boost confidence in the sector. Such a move would be viewed as a significant positive development across the cryptocurrency market.