Trump’s Fed Chair Choices Create Contradiction on Monetary Policy

On November 14, BlockBeats News reported that former US President Trump’s favored Federal Reserve chair candidates advocate limiting quantitative easing, contradicting his low interest rate preference.

This shift in monetary policy stance may influence future economic strategies, impacting both traditional and cryptocurrency markets sensitive to liquidity changes.

Fed Chair Candidates Suggest Restricted QE

The list of main contenders for Federal Reserve chair under Trump’s potential second administration includes Michele Bowman, Christopher Waller, Kevin Hassett, Kevin Warsh, and Rick Rieder, each with notable backgrounds in macroeconomic policy. Despite President Trump’s public preference for low interest rates, these candidates favor restricting quantitative easing—the primary tool for achieving such rates.

A potential shift in approach signals changes for future monetary policy, focusing on reducing the Federal Reserve’s balance sheet. This could lead to decreased global liquidity and impact financial and markets, especially if QE is significantly restricted. Such moves could ripple through markets, particularly affecting liquidity conditions in U.S. Treasury and MBS markets.

A quote from Christopher Waller, Fed Governor, mentions, “While traditional policy tools have served us well, I believe the Fed must avoid aggressive quantitative easing measures at this juncture.”

BTC Faces Pressure Amid Potential Tightening

Did you know? In 2018, when Fed tightened, BTC saw a downtrend as liquidity tightened, contrasting with the strong rally of 2020 during aggressive QE.

According to CoinMarketCap, Bitcoin (BTC) is currently priced at $97,284.32, with a market cap of $1.94 trillion and market dominance of 59.04%. Its 24-hour trading volume is $109.18 billion, showing a 49.59% decrease. Over the last 24 hours, BTC has fallen by 5.57%, continuing a 7-day decline of 4.85%. As of November 14, 2025, the circulating supply stands at 19,948,537 against a max supply of 21 million.

The Coincu research team notes potential outcomes influenced by these looming policy changes. Should the Fed implement a more hawkish stance, broader markets, including digital assets, might face pressure. Historically, crypto markets tend to experience pressure during tightening phases, with Bitcoin and Ethereum’s performance closely tied to monetary policy expectations.