(Bloomberg) – President Donald Trump said Sunday he has decided on his pick for the next Federal Reserve chair after making clear he expects his nominee to deliver interest-rate cuts a development closely watched across global markets, including forex trading strategies, indices trading, and the broader crypto market, where liquidity and risk sentiment are heavily influenced by Fed policy.
“I know who I am going to pick, yeah,” Trump told reporters on Air Force One on his way back to Washington, without naming his choice. “We’ll be announcing it.”
Trump has frequently criticized current Fed chief Jerome Powell for failing to lower rates swiftly and has signaled he wants a chair who will aggressively pursue rate cuts expectations that could impact risk assets ranging from equities to gold and even crypto investment trends.
People familiar with the matter told Bloomberg News last week that National Economic Council Director Kevin Hassett is seen as the likely choice to succeed Powell.
Hassett declined to address whether he sees himself as the frontrunner but highlighted positive market reaction to speculation about Trump’s pick a reaction closely monitored by traders across bonds, equities, and macro-sensitive assets, including those in the crypto market.
“We had a great Treasury auction, interest rates went down and I think that the American people could expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at lower rate,” Hassett said. His remarks reflect the broader narrative that aggressive Fed cuts could shift capital flows across traditional markets and digital assets tied to crypto investment.
Analysts warn that Hassett may struggle to unite the Fed’s rate-setting committee, but Trump views him as aligned on the need for substantial rate cuts. The possibility of Hassett’s nomination briefly pushed the 10-year Treasury yield below 4% a move tracked closely by traders using macro-driven forex trading strategies and those active in indices trading.
Treasury Secretary Scott Bessent said Trump could announce his nominee before Christmas. Other finalists include Fed governors Christopher Waller and Michelle Bowman, former governor Kevin Warsh, and BlackRock’s Rick Rieder all choices with potential implications for global liquidity cycles, risk sentiment, and correlated movements across stocks, bonds, and the crypto market.
Whoever Trump picks will require Senate confirmation, with Powell’s term ending in May. The decision comes at a time when global markets from Wall Street indices to emerging digital assets are reacting sharply to any signal on the Fed’s future direction.
