Trump hints at appointing crypto-friendly Chris Waller as the new Fed chairman

US President Donald Trump has praised Chris Waller, one of the candidates to become chairman of the US Federal Reserve.

Trump said during a news conference that he expects to make a decision “within weeks” on who will succeed Jerome Powell as chairman of the US central bank.

Known for being relatively crypto-friendly

“I think he’s great,” Trump said of Waller. “He has been there for a long time, I have been closely involved in his career and he is a fantastic man.” Trump thus fuels speculation about the direction that United States monetary policy could take under a new Fed administration.

Chris Waller is considered relatively open towards digital innovations within financial and crypto circles. Speaking in August at the Wyoming Blockchain Symposium, he said there is “nothing to be afraid of” about crypto payments taking place outside the traditional banking system. That statement earned him attention within the crypto sector, which is closely monitoring the appointment process of a new Fed chairman.

The Federal Reserve plays a central role in determining interest rates in the United States, and those interest rates have a major influence on financial markets worldwide, including the market for Bitcoin and crypto.

Shortlist of three to four candidates

According to Trump, the list of possible candidates has now been reduced to three or four names. “Honestly, I think any of them would be a good choice,” he said. He did not fully confirm who exactly was on the shortlist.

The prediction platform Polymarket is currently counting on several contenders. The best chance is attributed to White House economic adviser Kevin Hassett, with an estimated chance of more than 53 percent. Former Fed director Kevin Warsh follows with about 26 percent. Chris Waller is third with about 14 percent.

When Trump was asked whether Fed Governor Michelle Bowman is still in the picture, he did not give a direct answer. He did call her a “fantastic person”. Her chances are currently estimated as low by markets.

Announcement expected soon

Trump said he expects to announce the new Fed chairman “fairly soon.” “Maybe before the end of the year, but certainly within a few weeks,” the president said.

The choice of a new Fed chairman is politically and economically sensitive. The central bank formally operates independently, but the course it takes in terms of interest rates, combating inflation and financial stability has major consequences for the economy. The appointment is also seen as important within the crypto sector, because interest rate expectations are often related to investors’ willingness to take risk.

With the statements about Waller, Trump seems to be sending a signal about his preferences, although the final choice remains open for the time being.