The race to replace Jerome Powell as Federal Reserve Chairman is heating up, and a surprising contender is emerging as the frontrunner.
The Powell-Trump Showdown
President Trump has been publicly blasting current Fed Chair Jerome Powell for keeping interest rates high (between 4.25% and 4.50%). Trump wants lower rates to boost the economy, but Powell’s worried about inflation. This disagreement has led to Trump publicly pressuring Powell to resign or even hinting at firing him. While Powell’s term runs until May 2026, speculation about his successor is already rampant.
Chris Waller: The Unexpected Favorite
Enter Chris Waller, a Federal Reserve Governor and outspoken supporter of stablecoins. According to market data and analyst Jim Bianco, Waller is now the favorite to become the next Fed Chair, particularly within Trump’s circle.
Waller’s recent voting record is interesting. He voted to lower interest rates in the last FOMC meeting (though he lost the vote). This aligns with Trump’s desire for lower rates. If Waller becomes chair, it could mean a shift towards Trump’s preferred monetary policy.
Waller and Stablecoins: A Perfect Match?
Beyond his stance on interest rates, Waller is a known advocate for stablecoins – cryptocurrencies pegged to the value of the dollar. He believes they could increase competition in the payments industry and boost demand for the US dollar. This pro-crypto stance could be a significant factor in his appeal, especially considering a potential Trump administration’s possible pro-crypto policies.
What This Means for Crypto
A rate cut by the Fed would likely be great news for the crypto market, freeing up capital for investment in riskier assets like crypto. Combined with a potentially pro-crypto administration, this could be a very positive development for the crypto space. (Currently, the total crypto market cap is around $3.87 trillion).