Trump Signals Early-2026 Pick for New Fed Chair Amid Market Buzz

Trump to Announce New Fed Chair in 2026 as Powell Replacement Nears

US President Donald Trump has confirmed that he will announce the New Fed Chair “early next year”, offering the clearest timeline yet for selecting the next Federal Reserve chairman. The decision will shape US monetary policy at a time when inflation is cooling, and growth remains uneven.

For now, reacting to the current news, both traditional and crypto markets begin pricing in a potential shift toward cheaper capital and a more growth-friendly rate path. 

Trump Says Powell’s Replacement Coming Soon

Source: Bloomberg

During a Cabinet meeting at the White House on Tuesday, Trump said the Jerome Powell replacement will be revealed in early 2026. Powell’s term as Federal Reserve Chair ends in May, giving the president a major opportunity to reshape the Federal Reserve policies according to his stance, specially crypto favoured one, through the candidate of his choice. 

Treasury Secretary Scott Bessent, who is helping lead the search, previously hinted the name could emerge around Christmas. But Trump’s latest comments push the new Fed Chair date to the start of next year.

Trump noted that he initially considered about 10 people for the job but now a single finalist has been chosen. Still, he is known for last-minute changes, meaning the Trump Fed nominee is not final until he is officially announced.

Kevin Hassett Seen as Top Contender

Economist Kevin Hassett – a former Trump adviser and once chairman of the Council of Economic Advisers, has been widely viewed as a leading Jerome Powell replacement candidate. Mentions in the President’s statement have identified him as the frontrunner for the new Fed Chair.

Source: Bitcoin Magazine

Hassett has long argued for faster economic growth supported by easier monetary policy. His belief in rapid rate cuts has made him a favorite among investors hoping for a more aggressive shift in the next interest rate cycle.

Other shortlisted names include:

• Fed-Governor Christopher Waller

• Former Governor Kevin Warsh

• Fed Vice Chair Michelle Bowman

• BlackRock executive Rick Rieder
  

Trump has also joked about wanting Bessent in the role, but the Treasury secretary has firmly rejected it.

What It Means for Markets – and Crypto

If Hassett becomes the next Federal Reserve head, markets may immediately price in expectations of cheaper borrowing costs. Sectors that typically benefit from lower rates – include AI, semiconductors, housing, and more, but aside from that crypto also reacts significantly to the matter like that. 

How It Matters for Digital Assets Space?

Digital assets benefit directly from the possible scenarios after the new Fed chair selection:

• Cheaper borrowing costs → more liquidity entering risk assets

• Lower yields → reduced competition from Treasury returns

• Weaker dollar environment → historically supportive for Bitcoin

• Institutional inflows → more demand for BTC, ETH, and large-cap altcoins

Over the last 24 hours, the crypto market already jumped 7%, aligned with 3.98% weekly gains, supported by institutional buying and major network upgrades. The part of optimism is tied to Trump’s comments on selecting a new Federal Reserve chairman who could speed up cuts.

With the first FOMC meeting under the new chair scheduled for June, 2026, the “much higher asset prices”make sense if monetary policy turns loose. 

Challenges Still Remain: Politics, and Inflation

Even if Trump’s new Fed chair pick prefers cheaper money, real constraints remain:

• Inflation, though easing, still needs careful monitoring

• Fiscal pressure and US debt loads limit how aggressive cuts can be

• Political tensions between the White House and the Fed could complicate policy execution

• Broader Market: A dovish Fed may boost liquidity, but regularity uncertainty – from stablecoin rules to exchange oversight, could still cap upside and trigger volatility even in a cheaper-capital environment

Still, the expectation of a dovish new Fed chair path is enough for markets – especially crypto, to start pricing in change ahead of time.