Trump’s Fed Auditions Begin: Who Will Replace Powell in 2025?

Washington's power corridors are buzzing with a new kind of audition tape—résumés for the world's most influential economic seat. The race to potentially replace Jerome Powell at the Federal Reserve is officially open for business.

The Casting Call

Forget Hollywood. The real drama is unfolding on Pennsylvania Avenue. With the political winds shifting, the administration is reportedly vetting a slate of candidates who could steer U.S. monetary policy into a new era. It's a search that has Wall Street analysts and crypto traders alike refreshing their feeds.

Market Jitters & Digital Bets

Every whisper from D.C. sends ripples through traditional markets. But over in the digital asset arena, the calculus is different. A potential regime change at the Fed isn't just news—it's a volatility signal. History shows that shifts in monetary policy philosophy can act as a catalyst, pushing capital toward decentralized alternatives seen as hedges against systemic uncertainty.

The Powell Legacy & The Crypto Question

The outgoing chair's tenure has been a masterclass in navigating inflation, recession fears, and a booming digital asset class that the institution once largely ignored. The big question for the crypto world: Will a successor be more receptive, or double down on the regulatory scrutiny? The answer could define the next market cycle.

Why This Matters Beyond the Beltway

This isn't just a personnel change. It's a referendum on the dollar's digital future. A hawkish appointee could strengthen the dollar, temporarily pressuring crypto valuations. A dovish, innovation-friendly chair might green-light the financial experimentation that decentralized finance craves. The stakes couldn't be higher for an industry waiting for its 'Nixon goes to China' moment with the central bank.

One thing's certain: in the high-stakes game of central banking, the new player will need to understand that monetary policy now has a real-time, global, and decentralized audience judging its every move—a fact that would make any traditional banker's head spin. After all, in finance, the only thing more predictable than a rate hike is the industry's knack for finding a new reason to be cautiously optimistic, or as they call it on Wall Street, Tuesday.

In brief

• Donald Trump begins this week the interviews with finalists to replace Jerome Powell at the Fed.
• Tensions between Trump and Powell suggest a future Fed president might be either compliant or openly in conflict, with risks of increased politicization of the institution.
• The decision of the next Fed president will directly impact bitcoin and could trigger extreme volatility in the crypto market.

Donald Trump launches the auditions with finalists for the Fed

Donald TRUMP is set to meet the finalists for the presidency of the Fed this week. After months of speculation, names are circulating, and markets are already betting on their favorites. Kevin Hassett, director of the National Economic Council, leads with a 73% chance according to prediction platforms. Close to Trump, he embodies an accommodative monetary policy aligned with the president’s wishes: low interest rates to stimulate the economy.

Kevin Warsh, former Fed governor, follows with 13% chances. His profile, halfway between independence and political alignment, could appeal to those fearing a Fed too submissive to the executive. Christopher Waller, current governor, is only given 6%, but his experience could play in his favor. Finally, Michelle Bowman and Rick Rieder, though less cited, remain in the race. Their nomination WOULD surprise markets, but Trump likes theatrics.

The stake is clear: Donald Trump wants a successor to Jerome Powell able to cut rates quickly. A decision that will have repercussions far beyond Wall Street, especially on cryptos, which are sensitive to changes in monetary policy.

Fed: Does Trump want a puppet or an adversary?

Jerome Powell has often been the target of sharp criticisms from Donald Trump. Insults flew, illustrating a more than tense relationship. Powell, accused of hindering growth by maintaining rates too high, embodies for Trump everything a Fed president should not be: independent, sometimes disagreeing with the WHITE House. This is why Trump would not want to renew his term, besides the fact he was appointed by former US president Joe Biden.

The question is: will Trump seek a compliant ally to replace Powell, or a more independent profile, risking repeating the same conflicts? Kevin Hassett, market favorite, seems to fit the first scenario. His alignment with Trump’s positions could ease tensions but at the cost of a Fed seen as politicized. Conversely, a candidate like Kevin Warsh, although less likely, could embody some continuity with Powell, with the associated risks of friction.

Who will pay the bill in the Trump vs Fed war?

The appointment of the next Fed president by Donald Trump concerns not only traditional markets. The crypto ecosystem, especially bitcoin, will be directly impacted. Fed announcements and Trump’s reactions have always had an immediate effect on cryptocurrencies. An appointment perceived as too political could trigger increased volatility with sharp and unpredictable price moves.

If the Fed opts for a rate cut this December as Trump wishes, BTC could benefit. A weakened dollar and increased appetite for non-traditional assets could push investors toward crypto. Conversely, a divided or independent Fed could exert downward pressure on markets. Investors, fearing instability, might therefore turn to safer assets.

The appointment of the next Fed president by Donald Trump is a major event, with consequences far beyond monetary policy. For crypto, and especially bitcoin, it is a time of risks and opportunities. Between a compliant Hassett and an independent Warsh, scenarios are multiple for Jerome Powell’s successor. And you, do you think Trump will choose a compliant ally or a more independent profile?

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