In a surprising late-night political move, Donald Trump has dropped Treasury Secretary Scott Bessent from the shortlist of candidates to replace Federal Reserve Chair Jerome Powell.
Why the sudden change? According to CNBC, Bessent simply told Trump, “I’m good where I am,” in a private conversation — confirming he’s staying at Treasury, where he’s currently leading critical U.S.-China trade talks. Big tariffs are set to go into effect on August 12, making his role vital in the coming weeks.
Now, the spotlight shifts to who could lead the Fed next. Trump’s new watchlist includes:
🔹 Kevin Warsh – Former Fed insider
🔹 Kevin Hassett – Ex-White House economist
🔹 Two unnamed candidates still under wraps 👀
Trump hasn’t hidden his frustration with Powell, even calling him a “numbskull” for delaying interest rate cuts. With rates currently on pause and Fed Governor Lisa Cook suddenly stepping down, Trump sees an opportunity to test a potential replacement before Powell’s term ends in 2026.
💥 What This Means for Crypto
This political shake-up could have major ripple effects across crypto markets.
If Trump appoints a dovish Fed Chair — someone who favors lower interest rates and looser monetary policy — it could weaken the U.S. dollar, making Bitcoin and other cryptocurrencies more attractive as alternative assets.
Crypto often thrives in times of uncertainty, and any big changes at the Fed could increase market volatility, potentially boosting #Bitcoin prices.
On the flip side, if markets perceive instability or excessive government spending under new Fed leadership, crypto may be seen as a safe haven, similar to gold.
🌀 Bottom Line
The Fed chessboard is shifting fast. With Bessent out, and Powell in Trump’s crosshairs, the future of U.S. monetary policy could change dramatically.
And in today’s world, what happens at the Fed doesn’t stay at the Fed — it could be the spark for the next crypto bull run.
📈 #Crypto traders, stay alert — the next big move might come from Washington, not just the charts.
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