Trump's Fed Pick Could Reshape Crypto's Volatile Future

The U.S. Federal Reserve's search for a new chair has entered a critical phase, with Governor Christopher Waller confirming recent discussions with Treasury Secretary Scott Bessent about a potential nomination. Waller, a prominent voice on monetary policy, described the meeting as "nice" and "great," emphasizing his qualifications for the role, including "merit, experience, and knowing what they're doing in the job" [according to reports]. The Trump administration has narrowed the field to a shortlist that includes Waller, top economic adviser Kevin Hassett, former Fed governor Kevin Warsh, BlackRock's Rick Rieder, and Fed vice chair Michelle Bowman. Treasury Secretary Bessent told Fox News that President Trump plans to meet with three finalists after Thanksgiving and "hopefully have an answer before Christmas" [according to reports].

Trump's preference for a "politically correct" candidate aligns with his broader agenda to reshape monetary policy, particularly his push for interest rate cuts. The current chair, Jerome Powell, steps down in May, and Trump has criticized Powell for not aggressively lowering rates. The administration's focus on merit and experience suggests the new chair will need to balance Trump's populist economic goals with the Fed's dual mandate of price stability and maximum employment.

Meanwhile, the cryptocurrency market, a sector increasingly intertwined with macroeconomic trends, has shown mixed signals. While Bitcoin rebounded above $87,000 after dipping near $80,000, institutional inflows into crypto ETFs have been offset by selling pressure. [Analysts attribute the volatility] to uncertainty around the Fed's December rate decision, with markets now pricing in an 80% chance of a 25-basis-point cut following dovish comments from Fed officials like Mary Daly. "With rate-cut expectations fluctuating and risk appetite fragile, this week has all the ingredients for outsized moves across currencies, equities, commodities and crypto," said Lukman Otunuga of FXTM [according to analysis].

Crypto infrastructure also saw developments as TrustLinq launched a Swiss-regulated platform enabling direct crypto-to-fiat payments without requiring bank accounts. The service targets both individual and business users, [aiming to bridge the gap] between crypto holdings and real-world expenses like rent and payroll. Separately, BitMine's Ethereum strategy surpassed $1 billion in value, reflecting renewed institutional interest in the asset class despite broader market turbulence [according to reports].

The Fed's decision could have lasting implications for crypto markets, which have historically moved in tandem with interest rates. A dovish chair might accelerate rate cuts, potentially boosting risk-on assets like Bitcoin, while a hawkish approach could prolong volatility. "The bear market began in December 2024, and the next bull market may start in Q1 2026," said Andreas Brekken of SideShift.ai, [according to analysis] noting that macro conditions, including the Fed's quantitative tightening program ending in December, could reshape market dynamics.