BREAKING: US Federal Reserve Chair Update
As of August 8, 2025, Jerome Powell still holds the top seat at the U.S. Federal Reserve. His current term runs until May 2026, but political winds in Washington suggest we might see a change sooner than expected.
The Situation So Far
Powell has been steering the Fed ship since February 2018, with a second term that began in May 2022.
Recently, frictions between Powell and President Donald Trump have been making headlines, especially over the pace of rate cuts.
Governor Adriana Kugler’s early resignation has added fuel to speculation that a leadership shake-up is on the horizon.
What’s Next?
Trump is preparing to announce his nominee for Fed Chair in the coming days.
Treasury Secretary Scott Bessent has already declined the job, leaving a shortlist of heavyweights:
Christopher Waller – current Fed Governor, known for measured but steady policy calls.
Kevin Hassett – former Trump economic adviser, pro-growth and market-friendly.
Kevin Warsh – former Fed Governor, seen as a hawk with Wall Street experience.
Why This Matters to Markets
A change at the top of the Fed is not just a personnel swap - it’s a potential shift in U.S. monetary policy.
Trump’s administration has been openly pushing for lower interest rates to boost economic growth.
A new chair aligned with that vision could bring faster rate cuts - bullish for stocks and crypto in the short term, but possibly inflationary longer term.
Conversely, a more cautious appointee could maintain a tighter stance, aiming to keep inflation in check.
Market Watch
Expect increased volatility in bonds, the U.S. dollar, and gold as traders position for possible policy changes.
Equities and crypto could get a short-term boost if markets price in a faster easing cycle.