Donald Trump is approaching the appointment of a new Federal Reserve Chair, promising significant changes to US monetary policy.
Candidates for Fed Chair
President Trump has indicated that the list of candidates for the Fed Chair position has been narrowed to three or four contenders. He expressed dissatisfaction with current Chair Jerome Powell, labeling him as 'truly incompetent' and criticized his handling of mortgage rates. The selection process is overseen by Treasury Secretary Scott Bessent.
Impact on Monetary Policy
The anticipated appointment of a new chair could significantly influence US monetary policy. Changes in Fed leadership traditionally lead to adjustments in expectations regarding interest rate changes, which in turn can affect various financial assets like Bitcoin and Ethereum.
Market Anticipation of Changes
Financial markets are reacting with caution to the expected leadership changes at the Fed. Current impatience among investors suggests potential regulatory shifts that could substantially impact economic conditions in the country.
Changes in Fed leadership typically lead to increased volatility in financial markets. Given Trump's dissatisfaction with the current chair, significant policy changes may be on the horizon.
