#MacroWatchFedChairPick December 29, 2025 — Who Will Lead the Federal Reserve? A Historic Turning Point for Crypto & Markets

As the world awaits the next Federal Reserve Chair, markets are holding their breath over who will replace Jerome Powell when his term ends in May 2026. Powell has led the central bank through a period of rising and then gradually easing interest rates, but the next chapter will almost certainly redefine U.S. monetary policy for years to come. �
President Donald Trump has made clear he wants a Fed Chair who aggressively supports lower interest rates, signaling a shift from Powell’s cautious approach. On December 23, 2025, Trump publicly emphasized that he would not consider anyone who disagrees with his vision of loosening monetary policy, stating that potential picks should be aligned with his economic outlook. �

The leading contenders for the Fed’s top job have coalesced around a shortlist of influential figures. Two candidates have dominated both prediction markets and political discussion: Kevin Hassett, the White House National Economic Council Director and long‑time economic adviser to Trump, and Kevin Warsh, a former Federal Reserve Governor with deep central banking experience. Both are widely viewed as potential harbingers of a more dovish, liquidity‑friendly regime. �

Hassett has emerged in many markets as the front‑runner, supported by his close ties to the White House and vocal advocacy for lower rates amid broader economic growth. In recent public comments, Hassett highlighted strong U.S. GDP growth and argued that inflation could return to as low as 1 %, suggesting a narrative where lower rates could coexist with economic expansion. � Meanwhile, Warsh has gained ground in prediction‑market odds and among some professional bettors, with platforms showing him slightly ahead at times as markets weigh his experience and gravitas. �

Another dark‑horse candidate is Christopher Waller, a current Fed Governor whose recent interview with Trump was described as strong and well‑received. Although Waller is less directly tied to Trump’s political circle, his policy views — including supporting interest rate cuts — keep him in the mix. � Other names, such as BlackRock executive Rick Rieder and Fed Vice Chair Michelle Bowman, have also been mentioned among the prospective nominees, though they remain behind the top three in current speculation. �
Timing remains a key focus for markets. Recent reports suggest that Trump may announce his nominee by the first week of January 2026, weeks before Powell’s term officially concludes, a move that would heighten uncertainty and set off waves of volatility across financial markets. �

The implications of this decision for global markets — particularly crypto — are potentially enormous. A Fed Chair committed to aggressive rate cuts and liquidity expansion could weaken the U.S. dollar, drive capital into risk assets, and set the stage for renewed rallies in Bitcoin, Ethereum, and broader altcoin markets. Crypto analysts note that easier monetary policy historically correlates with strong performance in digital assets, as investors seek higher‑yielding assets amid lower yields on traditional instruments. � A more dovish Fed could likewise buoy equities and commodities such as gold, further amplifying risk appetite.

However, this scenario is not without risks. If uncertainty lingers or if the Fed’s direction remains unclear, short‑term volatility could persist in markets, with sharp swings as traders reposition ahead of official announcements. Even with a dovish outcome, macro swings could precede any sustained trend as participants grapple with the scale and timing of policy shifts.
In the end, the Fed Chair pick is not just a personnel decision — it defines the future of U.S. monetary policy, the trajectory of interest rates, and the broader environment for risk assets. Whether it results in a historic bull run for crypto or sparks fresh debate in financial markets, the appointment will be watched closely and is likely to shape investor sentiment well into 2026.
Which of the leading candidates — Hassett, Warsh, Waller, or a surprise nominee — will ultimately win the job? Will Bitcoin and Ethereum race to new highs if the Fed embraces lower rates and liquidity? Let’s discuss in the comments.