Bitcoin News Today: Trump's Dovish Push for Fed Chair as Markets Anticipate Rate Cuts

The Trump administration has narrowed the list of candidates to succeed Federal Reserve Chair Jerome Powell to five finalists, with President Donald Trump signaling he expects to announce a nominee by year-end, despite Powell's term extending until May 2026, according to a Bloomberg report. Treasury Secretary Scott Bessent confirmed the shortlist includes current Fed board members Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock Inc. executive Rick Rieder, according to an MPAMag article.

The candidates represent a mix of regulatory experience, policy expertise, and market insight. Waller and Bowman, both sitting Fed governors, have navigated recent monetary policy challenges, while Warsh's tenure during the 2008 financial crisis positions him as a figure of stability. Hassett brings White House economic policy experience, and Rieder, the sole non-Fed veteran, has drawn praise for his investment acumen at BlackRock.

Bessent, who has led the interview process, plans a second round of discussions and aims to present Trump with a "good slate" of candidates after Thanksgiving. Trump, meanwhile, has been vocal in his criticism of Powell, calling him "not at all smart" for maintaining higher interest rates amid calls for more aggressive cuts to stimulate growth. The president's preference for dovish policies aligns with expectations that the Fed will cut rates by 25 basis points at its October 29 meeting—the second consecutive reduction, according to a MarketScreener preview.

The selection carries significant implications for the Fed's future direction. A Trump-appointed chair could reshape the Federal Open Market Committee's (FOMC) approach to inflation, employment, and global economic risks. Waller, one of the finalists, has advocated for cautious rate cuts, emphasizing the need to balance labor market weaknesses with inflationary pressures. The president's push for faster reductions, however, suggests a potential shift toward more accommodative policy, which could influence markets ranging from equities to cryptocurrencies.

Global markets are already pricing in further easing, with the Fed's next rate cut expected in December. This dovish trajectory has fueled Bitcoin's recent rally, as ETF inflows surpassed $4.21 billion in October, driven by BlackRock's iShares Bitcoin Trust and other institutional players, according to a TradingNews report. While the direct link between Fed policy and crypto remains complex, historical data shows early rate cuts often spark stronger crypto gains than later reductions—a dynamic that could play out again under a new leadership regime, according to a CryptoNews analysis.

The final decision, however, hinges on Trump's strategic calculus. By appointing a fourth governor, he could tilt the FOMC toward his economic priorities, including lower rates to bolster a softening labor market. With trade tensions with China and U.S. tariff policies also in flux, the next Fed chair will inherit a landscape marked by both volatility and opportunity.