Friday, January 30, 2026 – President Trump will announce his nominee for Federal Reserve Chair. The move follows rising tensions with current Chair Jerome Powell, whose term ends next month, and could bring aggressive rate cuts to support economic growth. A crypto-friendly pick, like Kevin Warsh, may boost liquidity for Bitcoin, altcoins, and other risk assets, reinforcing Trump’s aim to make the U.S. a global hub for digital assets.
High Signal Summary For A Quick Glance
- What changes: Possible shift to aggressive rate cuts that could materially impact crypto prices and risk appetite.
- What stays: The Fed’s inflation and employment mandate remains the core framework guiding monetary policy.
- Why it matters: A pivot toward faster easing could reinforce Trump’s broader pro-crypto agenda and macro reforms.
- Watch out: Overly loose policy could raise stagflation risks and drive renewed volatility across USD and crypto markets.
- Retail traders: Short-term crypto volatility from rate expectations and leverage-driven positioning shifts.
- Long-term holders: Benefit from lower rates over time, but remain exposed to brief drawdowns if markets price uncertainty.
- Institutions: Portfolio rebalancing and risk-off/risk-on rotations may influence crypto ETF inflows.
- Crypto ecosystem: Upside tailwinds if policy evolves toward a more supportive, pro-crypto stance and improved liquidity conditions.
Trump Prepares to Replace Powell as Fed Chair Amid Market Watch
The announcement follows long-standing rising tensions between Trump and Fed Chair Jerome Powell. Trump, who appointed Powell in 2018, later faulted him for keeping rates too high, and Powell’s reappointment by Biden in 2022 deepened the divide. With Powell’s term ending in February 2026 and Trump back in office, the administration now has the opportunity to name a more pro-growth Fed chief, a move closely watched by stock and crypto markets.
This has happened before. Trump nominated Powell in 2017, a decision that markets welcomed, with the S&P 500 rising modestly and risk sentiment improving, while Bitcoin saw a small uptick. However, renewed rising tensions in 2019 over rate hikes led to market volatility, underscoring investor sensitivity to Fed leadership and policy direction..
Key milestones in Rising Tensions Over Fed Leadership
Powell nominated as Fed Chair
President Donald Trump nominates Jerome Powell to succeed Janet Yellen as Chair of the Federal Reserve.
Powell sworn in as Chair
Jerome Powell is sworn in as Chair of the Federal Reserve, beginning his first term leading U.S. monetary policy.
Trump considers firing Powell
Trump reportedly explores options to remove Powell over rate disagreements, but legal constraints limit presidential authority.
Biden renominates Powell
President Joe Biden announces Powell’s renomination for a second term despite political criticism and prior Trump-era tensions.
Second term begins
Powell is sworn in for a second term as Fed Chair, extending his tenure through May 2026.
Trump escalates public attacks
Trump intensifies criticism of Powell’s monetary policy, calling him a “fool” while describing their relationship in mixed terms.
Media publishes feud timeline
Major outlets publish detailed recaps of the ongoing Trump–Powell conflict, spotlighting the political pressure on Fed independence.
Bessent signals announcement window
Treasury Secretary Scott Bessent indicates Trump plans to announce a new Fed Chair by month’s end, possibly within the following week.
Cabinet meeting statement
During a Cabinet meeting, Trump reiterates that the new Fed Chair announcement will be made “next week.”
Trump clarifies announcement timing
Trump tells reporters the Fed Chair announcement will occur on Friday morning, sharpening market expectations around the leadership transition.
Underreported Angles on Trump’s Fed Chair Announcement
Amid Trump’s upcoming Fed Chair pick, rising tensions are also fueled by a DOJ probe into Powell over Fed renovation mismanagement, raising concerns of political pressure to cut rates and drawing criticism for threatening Fed independence.
The nominee list includes Kevin Warsh, Rick Rieder, Kevin Hassett, and Christopher Waller, all with differing views on rates and crypto. Senate approval may face resistance, potentially delaying decisions and adding crypto market uncertainty.
What Readers Should Watch Next
- Fed Chair Announcement: Tune in Friday morning for Trump’s reveal of the new Federal Reserve Chair, as the pick could signal shifts in interest rate policies affecting crypto liquidity.
- Market Volatility: Monitor stock and crypto markets immediately after the announcement for reactions, given past volatility during Trump’s Fed criticisms that influenced risk assets like Bitcoin.
- Nominee’s Background: Research the announced nominee’s stance on monetary policy and digital assets, especially if it’s Kevin Warsh, to gauge potential for pro-growth, crypto-friendly reforms.
- Policy Ripple Effects: Watch for subsequent Fed meetings and statements on rate cuts, which could boost long-term crypto adoption amid Trump’s push for the US as a digital asset hub.
