September Fed Rate Cut: Could Next Fed Nominee Spark a Bull Run?
Bitcoin traders believe that a more positive climate will result from the Fed’s first possible rate cut of the year, which is anticipated in September. The price may rise considerably more if the Fed nominates the proper person to be its head. This will rely on the person that US President Donald Trump chooses to succeed Chair Jerome Powell, according to economist Alex Krüger.
I have a high degree of confidence this cycle is not over because I am expecting changes in the Fed to bring on considerably more dovish monetary policy. This would start to get priced in once Trump announces his nominee to replace Powell,
Krüger
CNBC: Trump Considering 11 Candidates to Replace Jerome Powell
Trump has already started to nominate individuals as possible successors to Powell, whose term ends in May 2026. The Trump administration is reportedly examining 11 individuals to succeed Powell, according to a CNBC report on Wednesday. The most recent additions to the list are former Fed Governor Larry Lindsey, Rick Rieder, the global fixed income chief investment officer at BlackRock, and David Zervos, the chief market strategist at Jefferies. According to some rumors, Trump may reveal a replacement sooner than anticipated after reducing the field to three or four contenders.
Fresh Fed Leadership Calls Grow as Market Eyes September Policy Shift
Since his inauguration in January, Trump and Powell have had a tense relationship. The president has publicly criticized Powell and frequently criticized the Fed’s hesitance to lower interest rates.
Powell’s termination cannot come fast enough!
Trump
Senator Rick Scott of Florida concurred with the president, stating that the Federal Reserve needs fresh leadership. Krüger stated that he thinks the Fed will lower interest rates when it meets on September 17. The market is also generally in agreement with this opinion. According to the CME FedWatch Tool, 83.9% of participants expect a rate drop.
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