Trump’s 2026 Fed Chair Pick Looms: Crypto Markets Brace for Monetary Policy Shift

Political theater meets monetary policy. The stage is set for a 2026 showdown that could reshape the financial landscape—and digital asset investors are watching every move.

The Fed's Next Face

Forget boring central bankers. The coming appointment isn't just about interest rates—it's about the soul of American finance. Will the next chair embrace innovation or double down on traditional gatekeeping? The crypto sector bets on the former.

Timing Is Everything

Early 2026 gives markets over a year to speculate, position, and occasionally panic. That's plenty of time for Bitcoin to complete another cycle and for decentralized finance to further erode the old system's foundations. Traditional finance still operates on quarterly reports while crypto moves at blockchain speed—an institutional disadvantage that keeps getting wider.

The Digital Asset Angle

Every Fed decision sends ripples through risk assets, but crypto markets have developed a strange resilience. They react, then often diverge, creating their own momentum. A chair perceived as friendly to innovation could accelerate institutional adoption; a hostile one might just prove decentralization's ultimate value proposition.

Markets don't wait for permission anymore. While politicians debate appointments in 2026, code gets written today, liquidity pools deepen tonight, and a parallel financial system grows whether Washington approves or not. Sometimes the most powerful monetary policy happens on-chain, by consensus, without a single committee meeting.

Trump goes after Powell again while Hassett’s odds climb

Trump didn’t skip the chance to once again blast Powell over how he’s handled interest rates. He’s been pressuring the Fed for months, arguing that cuts should’ve come faster. On Tuesday, he said Powell a “stubborn ox, who probably doesn’t like your president.” Powell’s term as chair ends in May, but he could legally stay on the Fed board as a governor until 2028 if he’s not reappointed.

The criticism wasn’t limited to interest rate policy. Trump’s WHITE House has also taken aim at the Fed over the cost of building renovations, and is currently involved in a legal battle over Trump’s attempt to remove Fed Governor Lisa Cook from her seat.

As for who might be taking Powell’s spot, the buzz is around Kevin Hassett, director of the White House National Economic Council. His name has jumped to the top of the shortlist, and Polymarket odds show his chances have surged to a record 81%.

He’s seen as being fully on board with Trump’s push for lower rates and has already said he’d take the job if offered. Speaking on Fox News, Hassett said, “I want to serve my country, and I want to serve my president. But you know, we’ll see how it goes. There are a lot of great candidates.”

Other contenders still in play as Trump delays the reveal

Even with Hassett leading the odds, other names haven’t been ruled out. TRUMP in September listed Hassett, Kevin Warsh, and Christopher Waller as his top three. Others still in the conversation include Michelle Bowman and Rick Rieder of BlackRock.

Trump keeps joking that he’d pick Bessent himself, though Bessent has said no every time. But Trump has a history of sudden switches, and no pick is final until it’s made public.

Whoever gets nominated will need to go through Senate confirmation. If the person is from outside the Fed system, they’d be appointed to a 14-year term starting February 1st. That WOULD give Trump’s influence over the central bank some serious staying power, far beyond his own presidency.

This wouldn’t be Trump’s first time picking a Fed chair. He chose Powell during his first term, but later said he regretted it after Powell didn’t MOVE fast enough on cutting rates. This time, Trump wants a chair who won’t hesitate. Hassett fits that mould.

On November 20, he told Fox News he would “be cutting rates right now” if he were Fed chair, because “the data suggests that we should.” Hassett also said the central bank lost control of inflation after the pandemic and hasn’t recovered its grip.

Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.