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Rising tensions over Fed policy and an upcoming leadership change are creating uncertainty in markets and keeping investors on edge.
Author: Arushi Garg
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
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
President Donald Trump nominates Jerome Powell to succeed Janet Yellen as Chair of the Federal Reserve.
Jerome Powell is sworn in as Chair of the Federal Reserve, beginning his first term leading U.S. monetary policy.
Trump reportedly explores options to remove Powell over rate disagreements, but legal constraints limit presidential authority.
President Joe Biden announces Powell’s renomination for a second term despite political criticism and prior Trump-era tensions.
Powell is sworn in for a second term as Fed Chair, extending his tenure through May 2026.
Trump intensifies criticism of Powell’s monetary policy, calling him a “fool” while describing their relationship in mixed terms.
Major outlets publish detailed recaps of the ongoing Trump–Powell conflict, spotlighting the political pressure on Fed independence.
Treasury Secretary Scott Bessent indicates Trump plans to announce a new Fed Chair by month’s end, possibly within the following week.
During a Cabinet meeting, Trump reiterates that the new Fed Chair announcement will be made “next week.”
Trump tells reporters the Fed Chair announcement will occur on Friday morning, sharpening market expectations around the leadership transition.
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.
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