Trump Moves Markets While the Fed Faces Internal Split: A Bullish Signal for Crypto?

Markets are dancing to a new tune—and it's not coming from the Federal Reserve. While the central bank grapples with a deepening internal rift, a single figure is proving he can still move trillions with a tweet or a soundbite. The old guard is divided; the new one is decisive.

The Fed's Fractured Front

Consensus is crumbling. Hawkish members push for preemptive strikes against inflation, while doves warn of crushing a fragile recovery. The public split creates a vacuum of clear guidance—and markets hate uncertainty. It's a classic case of too many cooks, each with a different recipe for monetary policy.

One Man, One Market

Enter the disruptor. Policy announcements, regulatory threats, even off-the-cuff comments—each one sends shockwaves through traditional equities and bonds. This isn't subtle nudging; it's a sledgehammer to conventional market drivers. The lesson? Centralized power, whether in a boardroom or a government, is increasingly fragile and reactive.

Why Crypto Just Got a Tailwind

This is the perfect storm for digital assets. Bitcoin and its peers were built for this exact moment. When trust in centralized institutions fractures, the decentralized alternative shines. Volatility in traditional markets isn't a bug for crypto—it's a feature, highlighting its role as a non-correlated hedge. Watch as capital seeks a system that can't be swayed by a single personality or a committee vote. (After all, in traditional finance, the only 'decentralization' is the blame when things go south.)

The old world is arguing over the steering wheel. The new one is building a car that doesn't need a driver.

Trump moves markets while the Fed faces internal split

Prediction traders reacted fast after Trump told the Wall Street Journal that Kevin “is” his leading pick. On Kalshi, Kevin’s odds for the job rose from about 15% to 40%. Hassett’s chances dropped below 60% after sitting NEAR 80% earlier in the week.

Trump played up both men by saying, “I think you have Kevin and Kevin. They’re both — I think the two Kevins are great.” Investors treated the remarks as a fresh read on the race and priced them in quickly.

Inside the Fed, Wednesday’s policy meeting revealed DEEP disagreement, with some regional bank leaders arguing against more cuts, while Powell said the bar for more easing is high.

The meeting was described as tense, with some presidents pushing to hold rates steady.

Jamie warned earlier this year that “the independence of the Fed is absolutely critical” and said that interference “can often have adverse consequences.” JPMorgan declined to comment on what he said Thursday night. His current stance comes as Trump tests the limits of presidential power over the central bank.

Supreme Court weighs Trump’s authority as other candidates fade

The Supreme Court is set to hear a major case next month on Trump’s ability to fire agency officials even when Congress gave them job protection. The court’s conservative majority appears open to expanding Trump’s removal powers, but they have shown hesitation about applying that to the Fed. Last May, the court said the Fed has unique traits that separate it from other agencies. Even with that view, Trump moved in August to fire Fed Governor Lisa Cook, igniting a legal fight that could reshape the boundaries of Fed independence.

The U.S. Chamber of Commerce filed a brief urging the court to treat the Fed differently. The group pointed to the Sinking Fund Commission created in 1790 as proof that monetary bodies have long operated outside presidential control. Some legal scholars dispute that reading and say it misrepresents the Fed’s design.

Other names once in the mix included Fed Governors Christopher Waller and Michelle Bowman, and Rick Rieder, who runs fixed income at BlackRock. They were part of an original list of 11 candidates, but traders on Kalshi have now pushed their odds near zero. The contest is now treated as a two-person race, and Jamie made it clear which Kevin Wall Street wants for the job.

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