President Donald Trump Pushes for Immediate Rate Cuts by Next Fed Chair, Traders Bet

TLDR

• President Donald Trump demands immediate interest rate cuts from the next Federal Reserve chair.
• Kevin Hassett, White House economic advisor, is the top contender to replace Jerome Powell as Fed chair.
• Polymarket data shows a 77% chance of Hassett being nominated to replace Powell.
• Trump’s nomination could give him more influence over the Federal Open Market Committee.
• Crypto traders are betting on the number of rate cuts the Fed will make in 2026.

President Donald Trump has reiterated that the next Federal Reserve (Fed) chair must immediately cut interest rates. This statement came during a recent interview with Politico, where Trump emphasized the importance of rapid rate cuts. The president’s comments come as crypto traders are already speculating on the potential number of rate cuts the Federal Reserve will make next year.

Trump’s pressure on the next Fed chair reflects his consistent stance on lower interest rates. The president has previously expressed dissatisfaction with the current interest rate policies under Jerome Powell. He made it clear that anyone replacing Powell should prioritize reducing rates as an urgent first step. Trump’s push aligns with his broader economic vision of promoting growth through easier monetary conditions.

Kevin Hassett Favored to Replace Powell as Fed Chair

Kevin Hassett, a key economic advisor to Trump, has emerged as the favorite to become the next Fed chair. Polymarket data suggests a 77% chance that Hassett will be nominated to replace Jerome Powell. Trump has signaled his preference for Hassett multiple times, including in a recent public comment about his potential appointment.

Hassett has long advocated for lower interest rates, which aligns with Trump’s vision. The White House economic advisor recently suggested the Fed should cut rates by 25 basis points in the upcoming Federal Open Market Committee (FOMC) meeting. As the next Fed chair, Hassett is expected to push for similar policies, prioritizing rate cuts to stimulate economic growth.

Trump’s Influence on FOMC and Potential for Majority

Trump’s influence over the Federal Reserve could increase with his appointment of a rate-cut advocate like Hassett. Three current Fed Governors have expressed support for lower rates. This includes Chris Waller, Michelle Bowman, and Stephen Miran, all of whom have shown a willingness to reduce rates.

The next Fed chair will take over Miran’s seat, whose term ends in January. However, Trump will need to secure another Fed Board seat to gain a majority. While Powell’s tenure as chair does not end until 2028, there is speculation that he may step down before then.

Crypto Traders Bet on Future Rate Cuts

As Trump’s position on the Fed chair grows clearer, crypto traders are beginning to place bets on future rate cuts. Polymarket data reveals a 23% chance of three 25-basis-point cuts in 2026. Meanwhile, there is a 20% chance that the FOMC will implement four cuts, totaling a 100 basis point reduction.

Crypto markets are closely watching how the Fed’s monetary policy will evolve in the coming years. The bets on future cuts reflect growing expectations that the Fed chair under Trump will prioritize accommodative policies. As the situation develops, crypto traders will continue to monitor how these decisions affect market dynamics.

Fed Chair and Rate-Cut Expectations

Trump’s future nomination for the Fed chair will likely influence the direction of the central bank’s policy. The president has made it clear that he expects the new chair to immediately take action on rates. This would mark a shift from Powell’s current approach, which has been more cautious in terms of rate cuts.

As the Fed prepares for its upcoming meetings, data will play a crucial role in determining future rate decisions. The Department of Labor will release October and November PPI inflation reports in January.

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