Trump May Appoint New Fed Chair in First Week of January Next Year

Summary

According to BlockBeats, the probability of Kevin Hassett becoming the next Federal Reserve Chair has decreased to 42% on Polymarket. Meanwhile, the likelihood of Christopher Waller being appointed has risen to 12%, and the probability of Kevin Warsh being selected has increased to 31%. Previously, CNBC reported that individuals familiar with the situation have indicated that U.S. President Donald Trump may appoint a new Federal Reserve Chair in the first week of January next year.CoinLive

Impact Analysis

So, Trump is likely to appoint a new Fed Chair in the first week of January. This timing is crucial as it comes ahead of Powell’s term ending in May 2026. The market is already reacting with shifts in probabilities for potential candidates like Hassett, Waller, and Warsh. The key here is the strategic signal—Trump wants a growth-friendly monetary policy, which could mean a more dovish stance from the Fed. This could lead to lower interest rates or more accommodative policies, which might boost equities in the short term but could also stoke inflation fears. Watch for market volatility around this announcement, especially in interest rate-sensitive sectors. Bottom line—position for potential rate cuts and increased market liquidity, but be cautious of inflationary pressures down the line.