President Donald Trump confirmed that he will soon announce his choice for the next Federal Reserve chair, fueling expectations of significant market movements in bitcoin and cryptocurrencies.
Trump told reporters aboard Air Force One, “It’s coming out very soon,” referring to the Fed chair appointment. He reiterated his call for the Federal Reserve to cut interest rates, suggesting a good chairman would lower rates now and raise them later if inflation rises.
The Federal Reserve is expected to keep rates steady in its June and July meetings, with September’s decision remaining uncertain, according to the CME FedWatch tool. Trump expressed support for former Fed governor Kevin Warsh, a front-runner on crypto prediction platforms, describing him as “very highly thought of.” Warsh has previously indicated that shrinking the Fed’s balance sheet could allow for lower policy rates.
Analysts at the Bitfinex exchange noted that rate cuts would likely boost risk assets, including bitcoin. They estimate that if bitcoin maintains support above $105,000, it could reach $120,000 to $125,000 in June, driven by multiple catalysts, including potential Fed easing.
The Fed has held rates steady amid concerns over inflation fueled by trade tariffs introduced by Trump. Inflation data expected this week may show a slight increase after easing earlier in 2025.
Earlier reports indicated Trump considered removing Fed Chair Jerome Powell over his reluctance to reduce rates but has since stated he will not attempt to remove him before his term ends next year.
Investment manager Nicholas Hyett commented that strong jobs data and a healthy economy reduce the Fed’s incentive to cut rates, which could raise yields and complicate Trump’s fiscal plans.