Fed

#US President Donald #TRUMP is signaling a new era in economic policies after his 2025 election victory, and is preparing to announce the name of Fed Chair Jerome Powell's replacement earlier than expected. This surprise move has alarmed both Wall Street and cryptocurrency markets.
According to the special report by the Wall Street Journal, Trump is no longer hiding his anger at Powell for not making interest rate cuts quickly enough. Trump, who normally plans to postpone the announcement of the new president in September-October until the summer months, wants to make a transition to the post-Powell era as quickly as possible.
🎯 Trump's Candidate List Leaked: Crypto Friends and Foes Side by Side!
Here are the prominent names for the Fed seat and their public stance on cryptocurrencies:
🟩 Kevin Hassett - "Coinbase Advisor, Bitcoin Friend!"
Kevin Hassett, one of Trump's economic advisors, is a figure that inspires hope in the crypto community. He has both been a consultant at Coinbase and has been documented to have more than $1 million in shares from the exchange.
During his tenure at the helm of the National Economic Council, he led a working group that developed regulations aimed at strengthening the US’s digital asset leadership. If Hassett becomes president, a more innovative and encouraging approach to the crypto sector is likely to be adopted.
📈 Market Impact: Strong bullish signal in the short term for Bitcoin and crypto stocks!
🟩 Scott Bessent – “Bitcoin Should Be Our Strategic Reserve!”
Trump’s Treasury Secretary Scott Bessent is perhaps the name that has given the most open support to cryptocurrencies among the candidates. Drawing attention by saying “Crypto is freedom,” Bessent said in a statement last March:
“Instead of selling Bitcoin, we should add it to the US reserve.”
He also argues that stablecoins will strengthen the global dominance of the dollar and describes digital assets as “the world’s greatest economic innovation.”
📈 Market Impact: It could open the door to a historic rise for Bitcoin. The US's crypto leadership could be reshaped.
🟥 David Malpass - "Crypto is Speculation"
Former World Bank president David Malpass has a skeptical stance on the areas of use of cryptocurrencies. In a statement he made in 2023:
"The economic value that Bitcoin offers has not yet been proven."
Malpass, who sees crypto as a speculative asset class, argues that central banks should maintain their competitiveness against this technology.
📉 Market Impact: It could create selling pressure in the short term. Bitcoin may trend downward.
🟥 Christopher Waller - "Like a Baseball Card... Its Value is Based on Belief"
Christopher Waller, currently one of the Fed's directors, is one of the leading names that harshly criticizes crypto assets. According to him:
"Crypto assets are just like baseball cards. Their value is determined entirely by belief."
Waller is also against the idea of a central bank digital currency (CBDC). He argues that the state's involvement in this business will kill innovation in the private sector. He also states that regulations should be tightened against the sector, citing past crypto bankruptcies.
📉 Market Impact: It could cause a loss of confidence in the crypto market and capital flight.
❓ Kevin Warsh - Uncertain Status
Former Fed governor Kevin Warsh is one of the names who has spoken very little about cryptocurrencies in public. However, it is known that he opposed "inflationary monetary policies" in the past. Although he has not directly expressed support or opposition to alternative assets such as Bitcoin, he is known for his Wall Street-friendly identity.
📊 Market Impact: Neutral - market reaction may be limited until he reveals a clear crypto policy.
🇺🇸 How Does the Fed Presidential Election Process Work?
Trump will present his candidate for the Fed Presidency to the Senate. The Senate Banking Committee will hold hearings on the nominee, and then a vote will be taken in the Senate plenary session. The nominee will be officially appointed with the approval of the majority. The term of office of the Fed Chair is 4 years.
🚨 What Will Be the Outcome for Crypto Markets?
The name that Trump chooses will determine not only interest rate policy, but also the fate of the cryptocurrency sector in the US. In particular, the appointment of a crypto-friendly name such as Bessent or Hassett could ease the regulatory pressure of the SEC, pave the way for spot ETFs and lead the US to leadership in digital assets.
Conversely, the preference of skeptical candidates such as Waller or Malpass could create serious volatility in the market.
🚀 Final Word: This Election Could Change Not Only the Economy, But Also the Fate of Bitcoin
Trump's early Fed chair move will be decisive for the dollar, interest rate, inflation and crypto markets. Cryptocurrencies, in particular, will either transition to a bull season or face a deep correction depending on the name to be chosen.
#BTC #Fed #trumpcoin

Tensions are rising at the top of the U.S. central bank. President Trump wants rapid interest rate cuts, while Fed Chair Jerome Powell and most of his team remain cautious.
Back in the White House, President Donald Trump is losing patience. In his view, the Fed is dragging its feet on lowering interest rates—something he believes is essential for the economy and his political agenda. He's even considering replacing Powell this summer. Yet for now, Powell still has the backing of most of his team.

Trump-Appointed Members Shift Tone, While Majority Urges Patience
While most of the 12 voting members of the Federal Open Market Committee (FOMC) prefer to wait for more economic data, two of Trump’s appointees—Michelle Bowman and Christopher Waller—have unexpectedly come out in favor of a rate cut in July.
Bowman in particular shocked markets. Once a strong advocate for higher rates—having even voted against a 0.5% cut last year—her abrupt shift caught many by surprise. Waller echoed her sentiment, saying he also supports a move toward monetary easing. Their remarks pushed the market’s expectations for a July rate cut from 14% to nearly 25%.

Powell and Key Fed Governors Push Back
New York Fed President John Williams was among the first to respond. He said the current rate range of 4.25% to 4.5% remains “entirely appropriate,” stressing the importance of waiting for more data. Other regional Fed leaders followed suit, emphasizing that it's still too early for a move.
Analysts like Kevin Burgett of LHMeyer point out that Bowman and Waller remain outliers. If they vote for a rate cut next month without broader support, it would be the first such split in 32 years.

The Fed Is Divided: Some Want Action, Others Counsel Caution
This internal divide is also reflected in the Fed's projections. Ten voting members support two to three rate cuts this year, while seven prefer to wait until 2026. The divide has become public—and Trump is watching closely.
He may soon announce a replacement for Powell. Potential picks include one of the six remaining Fed governors or an outside candidate, with Adriana Kugler's term ending in January.

Tariff Concerns Deepen the Rift
One major reason Powell is resisting rate cuts is Trump's push for new tariffs. Powell fears these could reignite inflation, undermining the Fed's hard-won progress. Bowman and Waller disagree, saying inflation is falling and that businesses are absorbing the costs without passing them on to consumers.
However, most Fed officials remain skeptical. Williams pointed to a New York Fed survey showing that many companies are passing tariff-related costs directly to customers. Others warn that the impact on prices may not be immediate—especially if businesses stockpiled inventory in anticipation of the tariffs.

Conclusion: Powell Holds the Line – For Now
As the July meeting approaches, the Fed walks a tightrope. Trump demands swift action. Bowman and Waller seem ready. But Powell remains firm—at least until new data suggests otherwise. And for now, the majority of the Fed's board stands with him.

#Fed , #JeromePowell , #FederalReserve , #TRUMP , #USPolitics

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Former U.S. Treasury Secretary Steven Mnuchin shared an optimistic outlook on monetary policy during his appearance on CNBC. He expects the Federal Reserve to cut interest rates by 75 to 100 basis points over the next 12 months, stating that markets have already priced in this scenario.

🔹 Fed Taking a Cautious But Clear Path
Mnuchin praised Fed Chair Jerome Powell’s cautious and patient approach. “Inflation, once considered transitory, has shown lasting effects. Powell recognizes this but also sees that conditions now allow for rate cuts,” Mnuchin explained. He believes the rate reductions will be gradual and are already reflected in asset prices.
If there are no major economic surprises, Mnuchin predicts interest rates could decline by a full percentage point.

🔹 Trump Preparing Trade Deals, Tariff Delays Possible
Mnuchin, who handled financial policy during the Trump administration, also revealed that the former president is preparing to announce new trade agreements. He mentioned ongoing negotiations with countries such as China, India, and Japan and suggested that July’s planned tariff hikes could be postponed if progress is made.
“So far, the imposed tariffs haven’t raised inflation. That supports market expectations for lower interest rates,” he added.

🔹 TikTok Deal Likely Without Full Sale
Mnuchin also addressed the ongoing TikTok situation, predicting a solution that doesn't involve a full sale of the platform. Instead, he foresees the involvement of new investors who would reshape the company’s ownership in cooperation with Chinese parent ByteDance. He mentioned that his own investment interests are currently inactive.

🔹 Bond Yields Unlikely to Fall Below 4%
Mnuchin said it's unlikely that yields on 10-year U.S. Treasury bonds will fall below 4%. A decline to the 4.0–4.25% range is possible, aligning with a scenario of gradual monetary easing without drastic policy shifts.
He also reassured that a significant economic slowdown is not expected, and that markets are already reacting to this outlook.

🔹 Tax Cuts and the Need for Growth
Mnuchin emphasized that a major tax package pending in the Senate will be critical for markets. He strongly supports extending the Trump-era tax cuts, calling them essential for economic health.
While acknowledging that long-term debt and deficits pose a serious challenge, Mnuchin believes that if GDP growth stays around 3%, the situation can be managed without drastic spending cuts. However, if growth slows, budget cuts will become inevitable, he warned.

#Fed , #economy , #usa , #USPolitics , #FederalReserve

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Federal Reserve Chair Jerome Powell has not ruled out the possibility of interest rate cuts in 2025. Speaking before the House Financial Services Committee, he emphasized that any policy changes will depend on incoming economic data – particularly inflation and the effects of trade tariffs.

🏛 Fed Takes a Wait-and-See Approach
According to Powell, there is currently no plan for an immediate rate cut. Although the U.S. economy is navigating turbulent conditions, the central bank is choosing to wait for clearer signals. “We are well-positioned to wait and see how inflation evolves,” Powell stated, noting that June and July inflation data will be crucial.
Tariffs imposed in recent years could continue to affect consumer prices, which is why the Fed remains open to various scenarios. “The impact may be smaller than expected – but we need certainty,” he added.

📉 Inflation and Tariffs as Key Unknowns
Powell acknowledged that the full effects of previous tariff measures are not yet evident. The Fed needs more time to assess whether higher import duties are driving prices upward or if the market is adjusting to the changes. Only then can a decision on rates be made.

💵 Dollar’s Strength Remains Unshaken
Despite concerns about the economic effects of tariffs, Powell dismissed speculation about the U.S. dollar’s global status. “Talks about the dollar’s decline are exaggerated,” he said. He noted that recent volatility in U.S. Treasuries did not harm the dollar’s position as the world’s reserve currency.

🧮 Concerns Over U.S. Fiscal Trajectory
Powell also acknowledged that the country’s debt path is unsustainable. While avoiding direct commentary on fiscal or immigration policy, he stated that the current fiscal course “is not healthy in the long term.”

🔥 Schiff Warns of Economic Crisis Ahead
Economist Peter Schiff holds a starkly different view from Powell. He has long criticized the Fed’s monetary policy, arguing that inflation is not being driven by tariffs, but by the Fed’s own actions — particularly the prolonged period of ultra-low interest rates.
Schiff warns that the U.S. is headed for a combination of recession and high inflation — stagflation — and even suggests hyperinflation is possible. He fears global investors could begin to exit U.S. markets, further weakening the dollar. “All the inflationary chickens the Fed let loose over the last decade are coming home to roost,” Schiff remarked.

#JeromePowell , #Fed , #Tariffs , #Inflation , #GlobalMarkets

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“