U.S. President to Announce New Fed Chair as Pro-Crypto Chris Waller Gains Traction

U.S. President has disclosed plans to appoint the next Federal Reserve Chair next week, amidst his ongoing criticism of current Chair Jerome Powell. This announcement coincides with pro-crypto Fed Governor Chris Waller gaining traction in the race to replace Powell.

Announcement of New Fed Chair Imminent

During a recent cabinet meeting, the President stated that the new head of the U.S. central bank would be named next week. This followed U.S. Treasury Secretary Scott Bessent's comments indicating a similar timeline for the announcement of Powell's successor.

The President reiterated his criticism of Powell for not reducing interest rates and emphasized that his successor should implement rate cuts immediately. He suggested that rates should be lowered by two to three percentage points.

According to a recent report, the President urged the Federal Reserve to lower interest rates immediately, arguing that maintaining current rates was detrimental to the nation. He highlighted that inflation is no longer a pressing issue and there is no justification for unchanged rates.

Following the recent FOMC meeting, where the Fed maintained steady rates after three cuts last year, Powell indicated no immediate plans for further cuts, citing stabilization in the labor market and elevated inflation levels.

Crypto traders are speculating that the Fed will maintain current rates until June, coinciding with the end of Powell's term. Based on the President's remarks, there is a strong likelihood of a rate cut at the June meeting, with Polymarket data showing a 70% probability.

Chris Waller's Rising Prospects

Polymarket data indicates a rise in Chris Waller's odds in the Fed chair race, increasing from around 8% to approximately 14% following the recent FOMC meeting. Waller's prospects improved after his dissenting vote for a 25 basis points rate cut, alongside Fed Governor Stephen Miran. Despite this, BlackRock's CIO Rick Rieder remains the leading candidate, with a 38% chance of nomination, while former Fed Governor Kevin Warsh holds a 30% chance. Meanwhile, former favorite Kevin Hassett now has an 8% chance.

The President's nominee might face challenges as some senators, like Tom Tillis, have vowed to block any confirmation until the DOJ's investigation into Powell is concluded. Powell, during his post-FOMC press conference, refrained from commenting on the investigation or his future role on the Fed Board after his term ends in May.