Trump reveals who will be the next Federal Reserve President

Amid the ongoing World Economic Forum in Davos, Donald Trump announced his decisions regarding the replacement of Federal Reserve leadership. Under increasing market pressure and his own frustrations with current policy, Trump is preparing to appoint a new president for the institution that controls U.S. monetary policy. This decision will mark a major shift in American economic strategy, with profound implications for investors and participants in the global market.

Announcement of leadership change triggers turbulence in financial markets

Trump publicly revealed that he will appoint a new Federal Reserve chair, emphasizing that the current head, Jerome Powell, no longer aligns with his vision for the institution. In strongly critical statements, Trump expressed frustration with the pace of interest rate adjustments, suggesting he would prefer a more aggressive approach. “I will make a decision very soon. I believe the person chosen will do an excellent job,” Trump stated, mentioning that the new president will be male.

The market reaction was immediate and notable. The Dow Jones Industrial Average fell by 1.8%, while the S&P 500 declined by 2%, and the Nasdaq experienced a drop of 2.4%. These drastic movements reflect investor uncertainty about how monetary policy will evolve under new leadership. U.S. Treasury bond yields increased, indicating a reallocation of capital across markets amid this uncertainty. Volatility became the unmistakable hallmark of the day, with traders evaluating multiple scenarios regarding the future direction of interest rates.

Who are the candidates and what will be the consequences for the Fed

The four candidates mentioned for the position of chair are Kevin Hassett, Kevin Warsh, Chris Waller, and Rick Rieder. Each brings a different perspective on economic policy. For example, Kevin Warsh played a crucial role in managing the 2008 financial crisis, demonstrating adaptability in difficult economic contexts. The experience of these candidates in the field could fundamentally influence the Fed’s approach to future challenges.

Trump harshly criticized the repetitive cycles of position changes adopted by former Fed presidents once they took office. “Every candidate makes an extraordinary impression during the interview. But the problem arises after they accept the position – suddenly their perspective changes,” Trump argued. This observation reflects a long-standing tension between presidential administrations and the Fed’s institutional independence, with implications for how monetary decisions will be made in the near future.

Impact on cryptocurrency markets and ongoing volatility

Cryptocurrency markets have not remained indifferent to these events. Ethereum (ETH), one of the leading digital assets, has depreciated significantly. As of January 30, 2026, the ETH price dropped to $2,720, with a market capitalization of $328.22 billion. The trading volume over the last 24 hours was $689.84 million, and the 24-hour change marked a decrease of 8.45%. Compared to the period analyzed in the previous report, this represents a further decline, reflecting the crypto market’s sensitivity to macroeconomic news.

Bitcoin (BTC), which also functions as a market sentiment indicator, experienced correlated fluctuations. Cryptocurrency markets are particularly sensitive to changes in interest rate policies, as a more aggressive Fed in raising rates makes riskier assets, including cryptocurrencies, less attractive compared to safer government bonds.

Future outlook and strategic implications

Leadership change at the Fed will open a new chapter in U.S. monetary policy. Regardless of who is chosen as the new chair, markets will closely monitor their initial statements and actions. A more permissive approach to interest rates could revive risk markets, including cryptocurrencies, while a more restrictive stance could sustain current pressure on these assets.

For investors, anticipating and understanding these leadership changes at the Fed are essential. The change of president at the central institution that controls U.S. monetary policy is not merely a political event – it has direct implications for purchasing power, credit rates, and global investment returns. Information portals like CoinMarketCap continue to provide real-time updated data, helping traders and investors stay informed as these events unfold and markets rebalance around new expectations for the Fed’s future direction and U.S. economic policy.