Trump Fed Pivot Could Ignite New Crypto and Stock Rally

Trump Pushes Rate Cuts, Eyes New Federal Reserve Leader

Trump hinted at replacing Jerome Powell with Kevin Warsh

US President informed reporters on board Air Force One on Friday that the Federal Reserve's leader choice is "coming out very soon."  The president confirmed that Kevin Warsh, a former Fed governor, is now being seriously considered to replace Jerome Powell and stated that he is no longer willing to keep Powell in his position. When asked openly about Kevin, He responded, "He's very highly thought of."

Trump insists lower interest rates are vital for U.S. growth.

The comments came after President and Fed Chair Jerome Powell met in person recently, during which Trump allegedly informed Powell that he was making a "mistake" by maintaining high interest rates.

Trump has been long attacking the Fed's cautious interest rate policy, claiming that lower rates are necessary to support U.S. growth and maintain the country's competitiveness in the world economy. His remarks support the idea that a key component of his second-term agenda will be monetary policy.

"Europe has had 10 rate cuts, we have had none. Despite, our Country is doing great. Go for a full point," Trump wrote in a social media post. Central banks typically limit rate moves to quarter point changes outside of crises.

Fed maintains a cautious stance amid inflation concerns.

Following a more rapid than anticipated drop in inflation and a noticeable slowdown in the labor market, the Fed did lower rates by half a percentage point last September.  Citing uncertainties over tariff policy and inflation that is still above its 2% target, it has maintained the policy rate stable since delivering two more quarter-point rate reductions by the end of 2024.  Trump claimed that if rate reduction resulted in inflation, they could always raise rates once more.  Powell has been criticized by the president on several occasions for not lowering interest rates as he wants.  Trump told Powell that he was making a "mistake" by not cutting rates at their first in-person meeting last week.

He insists that the Fed needs to act now, and he’s ready to remove Powell if that doesn’t happen soon. He’s publicly berated him more than once, but this is the first time he’s openly said who might replace him.

Jerome has stated that the Fed will not take politics into account when determining policy; instead, it will base its choices only on the state of the economy and its prospects.  The policy rate has been in the 4.25%-4.50% range since December, and the Fed left it there in May. Since then, policymakers have said they might keep it there for a few more months while they await further information on how Trump's tariff and other policies would impact inflation and the labor market.

Potential leadership shifts could trigger market volatility.

The short-term outlook for the crypto and stocks markets could be more bullish, with easing measures potentially announced by Powell. The interconnected nature of ETFs and governments' view of them as real assets could lead to more bullish waves and pumps, with shorter, milder bear markets starting with BTC. If the next Fed Chair has a greater appetite for action, the bear market could be softer and shorter. This would require less luck but more knowledge, patience, and discipline, allowing true investors and traders to thrive. With a new Fed Chair, the market could be more interesting.

This isn’t just politics—it’s a signal. Rates, inflation, and markets are about to be steered in a whole new direction. Get ready, because what comes next won’t be subtle. Changes like this usually cause big market moves, and crypto feels it first. This could start the next big bull run or a big drop.