President Donald Trump is poised to announce the new Federal Reserve chair on January 30, 2026, amid tensions with current Chairman Jerome Powell over interest rate decisions.
The announcement could influence U.S. monetary policy, affecting cryptocurrency markets like Bitcoin and Ethereum due to the strengthened dollar and potential shifts in rate expectations.
Trump’s Fed Chair Choice Expected This Friday
President Donald Trump is poised to announce his choice for the next Federal Reserve chair on Friday. The decision follows tensions with current Chairman Jerome Powell over interest rates. This announcement comes amid a strengthening US dollar.
Trump’s relationship with Powell has been strained since the Fed’s decision to hold interest rates steady. Christopher Waller, a current Federal Reserve Governor, is on Trump’s shortlist for the chair, advocating for a rate cut. Changes could influence monetary policy.
Stronger USD Disturbs Precious Metals Market
The announcement has intensified USD strength and driven down precious metals’ prices. These financial shifts can indirectly impact cryptocurrencies like BTC and ETH, leading to increased market scrutiny. The market awaits further developments from Trump’s decision.
The financial landscape may witness pressure on risk assets due to a stronger dollar. Trump’s critique of interest rates as an unnecessary expense could affect liquidity flows, pulling away from cryptocurrencies if rates remain high.
Trump-Powell Tension Mirrors 2017 Market Impact
Historically, Trump’s criticism of Powell reflects similar past tensions when he first nominated him in 2017. Fed policies under previous similar conditions have caused market volatility, especially affecting macro-sensitive cryptocurrencies like BTC and ETH.
According to Kanalcoin insights, economic trends suggest that dollar liquidity shifts could either support or hinder cryptocurrency markets depending on the Fed’s future policies. These shifts are critical given the current monetary landscape.
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