U.S. President Donald Trump has revealed his plans to name the next Fed chair by next week, even as he continues his attack on the current chair, Jerome Powell. His statement comes just as pro-crypto Fed Governor Chris Waller gains momentum in the race to succeed Powell.
Trump Says He Will Name Next Fed Chair Next Week
During today’s cabinet meeting, the U.S. president announced that they will name the next head of the U.S. central bank next week. This followed U.S. Treasury Secretary Scott Bessent’s interview yesterday, during which he also said they would name Powell’s successor in about a week.
Trump again criticized Fed chair Jerome Powell for not lowering rates, while he reiterated that he expects whoever succeeds Powell to immediately lower rates. This came as he mentioned that they should be two to three points lower in terms of interest rates.
As CoinGape reported earlier today, Trump called on the Fed to immediately lower interest rates, stating that the decision to hold rates steady was harming the country. He noted that inflation was no longer a concern and that there was no reason to keep rates unchanged.
His comments followed yesterday’s FOMC meeting, where the Fed decided to hold rates steady after making three cuts last year. Fed chair Powell signaled they were in no rush to make further rate cuts, noting that the labor market is stabilizing and inflation remains somewhat elevated.
Crypto traders are currently pricing in the possibility that the Fed will hold interest rates steady until June, when Powell’s term would have ended. Based on Trump’s comments that the new chair should immediately lower rates, there is a strong likelihood the Fed will lower rates at the June meeting, with Polymarket data showing a 70% chance of that happening.
Pro-Crypto Chris Waller Gains Momentum
Polymarket data shows that Fed Governor Chris Waller is gaining momentum in the Fed chair race. His odds of being nominated to succeed Powell rose from around 8% prior to yesterday’s FOMC meeting to aound 14% at the time of writing.
Source: PolymarketThe rise in Waller’s odds follows his dissent at yesterday’s meeting in favor of a 25 basis points (bps) rate cut. He and Fed Governor Stephen Miran were the only ones who dissented in favor of a rate cut. However, despite the rise in Waller’s odds, BlackRock’s CIO Rick Rieder is still the favorite to become the next Fed chair.
Polymarket data shows a 38% chance that Trump will nominate him to succeed Powell, while former Fed Governor Kevin Warsh has a 30% chance. Meanwhile, former favorite Kevin Hassett now has only an 8% chance of succeeding Powell.
Trump’s potential nominee could face obstacles, as senators such as Tom Tillis have said they will oppose any nominee’s confirmation until the DOJ’s investigation into Powell is resolved. During his post-FOMC conference yesterday, Powell chose not to address the DOJ investigation. He also refused to comment on whether he will remain on the Fed Board when his term as Fed chair ends in May.
Source: https://coingape.com/trump-to-name-next-fed-chair-next-week-as-pro-crypto-chris-waller-gains-momentum/
