Trump Ends Treasury Secretary’s Fed Chair Consideration, Eyes Four Candidates

U.S. President Donald Trump announced that Scott Bessent, Treasury Secretary, is no longer considered for Federal Reserve Chair as Bessent prefers staying at the Treasury.

Trump will select the Chair from four finalists, affecting macroeconomic policies and potentially influencing cryptocurrency markets due to changes in interest rates.

Trump Narrows Fed Chair Candidates to Four

In a recent announcement, President Trump confirmed that the selection of the new Federal Reserve Chair would be restricted to four specific candidates. Scott Bessent, the current Treasury Secretary, was withdrawn from the potential choices following his expressed wish to continue his role at the Treasury. Below is a relevant quote from the President:

Trump’s decision is expected shortly, influenced by the recent resignation of Adriana Kugler, a Federal Reserve governor whose departure allows for a new appointment. Trump’s selection shortlist includes Kevin Hassett and Kevin Warsh, among others currently unspecified.

“I asked him just last night, ‘is this something you want?’ … He does not want it — he likes being Treasury secretary.” — Donald Trump, U.S. President

Potential Market Impact from Fed Leadership Choices

Did you know? When Jerome Powell was first nominated as Fed Chair in 2017, traditional and digital asset markets, including Bitcoin and Ethereum, reacted swiftly to his initial guidance, highlighting the Chair’s influence on financial markets.

According to CoinMarketCap, Bitcoin (BTC) is trading at $113,811.71 with a market capitalization of $2.27 trillion and a 24-hour trading volume of $61.03 billion. Over the past 90 days, BTC has increased by 16.19%, showing resilience amidst financial policy discussions.

The Coincu research team highlights potential ramifications on global monetary policy should a candidate like Kevin Warsh, with a hawkish reputation, be appointed. Conversely, a more dovish appointee may support digital asset growth given historical precedents where dovish policies favored risk-on assets. This anticipation holds particular significance for crypto markets, where speculative activity often reacts promptly to new economic policies.