01 Breaking News
A high-level development out of Washington is sending ripples through global financial markets. According to sources cited by CNBC, President Trump may appoint a new Federal Reserve Chair during the first week of January 2026.
While this timing is slightly later than the "around Christmas" window previously mentioned by Treasury Secretary Besant, it signals that this major personnel decision is now entering its final countdown.
Regardless of who is ultimately chosen, this appointment will directly shape global monetary policy for years to come and have far-reaching implications for the cryptocurrency market.
02 The Candidate Landscape
Trump’s team has been vetting candidates for the Fed Chair position for months, with the shortlist evolving through several rounds of selection.
Treasury Secretary Besant stated that the White House had considered about 10 candidates, but the list was "down to one." However, other reports suggest the candidate pool has actually expanded to 11, far broader than the initial rumors of a tight-knit shortlist.
Currently, market attention is focused on a handful of core contenders.
Kevin Hassett is widely seen as the frontrunner. Trump has publicly referred to him as a "potential Fed Chair," an unusual remark interpreted as a strong signal. Hassett currently serves as Director of the National Economic Council and is a key member of Trump’s economic policy team.
Kevin Warsh is another strong contender. The former Fed Governor recently met with Trump at Mar-a-Lago, and reports indicate Trump is considering him for Treasury Secretary, with the possibility of nominating him for Fed Chair once Powell’s term ends.
Christopher Waller, a current Fed Governor, also ranks high on the shortlist. Market analysts believe Waller’s appointment could bring a smoother policy transition, given his extensive experience within the Federal Reserve system.
Most analysts agree that while the candidate pool appears large, the true competition is limited to a select few closely aligned with Trump’s views. The final choice is likely to come from this small circle.
03 Policy Direction
The expansion of the candidate list may reflect a strategic move by the White House to pressure the Fed to cut rates. Some experts see this "open process" as a form of political theater.
The 11-person list includes some unexpected names, such as Fed Vice Chair Philip Jefferson and Dallas Fed President Lorie Logan—both traditionally cautious about rate cuts.
Some analysts suggest that broadening the list gives administration officials an opportunity to privately signal to certain candidates that "it’s time to lower rates."
In this way, the White House may be able to influence the internal climate of Fed discussions, potentially steering monetary policy even before the nomination is finalized.
04 Fed Independence Under Threat
No matter who ultimately leads the Fed, a deeper issue is emerging: To what extent will the Federal Reserve’s independence be challenged during Trump’s second term?
Back in April, US media reported a bombshell: Trump’s allies were drafting a series of recommendations aimed at weakening the Fed’s independence if he wins the election.
Reportedly, these recommendations include subjecting Fed regulations to White House review, leveraging the Treasury Department to counterbalance the Fed, and even requiring presidential input on interest rate decisions.
Trump has long expressed frustration with the Fed’s reluctance to adjust rates according to his preferences. He has publicly criticized current Chair Powell for being "too slow and too cautious" in cutting rates.
While there are institutional barriers to Trump gaining full control—Fed Governors serve 14-year terms, and the president cannot dismiss them over policy disagreements—the direction is clear.
05 Market Response and Crypto Opportunities
Against this backdrop of major policy uncertainty, the cryptocurrency market is showing a complex reaction.
As of December 23, Gate market data shows the price of Bitcoin has pulled back to $87,323.4, down 2.5% over 24 hours. Meanwhile, Ethereum is holding relatively strong, consolidating around the 2,950 USDT level.
Historically, periods of Fed policy transition have created key opportunity windows for the crypto market. Analysts note that if Trump successfully appoints a Fed Chair favoring more accommodative monetary policy, it could weaken the US dollar, boost liquidity in traditional financial markets, and drive some capital into alternative assets like cryptocurrencies.
However, such policy shifts also carry inflation risks. Experts warn that excessively low rates could fuel inflation, and foreign investors may lose confidence in US assets.
For crypto investors, these macro changes require careful interpretation and strategy. On one hand, easier monetary policy could make risk assets more attractive; on the other, rising inflationary pressures may prompt more investors to view crypto as a hedge.
Gate, as a leading global cryptocurrency exchange, provides users with real-time market data and in-depth analysis to help investors make informed decisions during this critical policy turning point.
06 Unresolved Variables
Who will the Trump administration ultimately choose to lead the world’s most influential central bank? The answer will not only impact trillions of dollars in traditional financial markets but could also redefine the role of cryptocurrencies within the global financial system.
Trump is known for his unpredictable decision-making—"until it’s announced, nothing is set in stone."
As the first week of January approaches, global markets will be watching Trump’s final decision and the policy intentions behind it. The crypto market, as one of the most dynamic sectors in global finance, is already preparing for a moment that could reshape its future trajectory.
No matter the outcome, a more politicized Fed and a more uncertain monetary policy environment could present a historic opportunity for cryptocurrencies to prove their value as alternative stores of value and safe-haven assets.
