Next Fed Chair? How Markets & Crypto Could React EXPLAINED

"And if he does become Fed chair, a flatter yield curve overall. And that's because the markets would expect the Fed to cut rates more quickly than the long-term expectations for growth or inflation would decline. For currencies, it signals a lighter dollar. And June's knee-jerk drop in the DXY after Waller spoke previewed exactly that. Stocks and crypto do like the combination of falling real yields and a softer dollar. So, a Waller Fed would be expected to provide a natural bid for crypto."

"Whichever way you look at it though, Waller would certainly have a dovish tilt that tends to favor crypto. And most importantly for crypto traders is the speed with which Waller's words would translate into price action."

"A wash chairmanship would be stark, particularly as traders don't seem to be pricing that in with as much likelihood as the betting markets would suggest. A sharp turnaround in expectations if Walsh's odds were to significantly rise from here would have a more dramatic market impact as a result. Should Trump actually choose him, expect an immediate repricing, a stronger dollar, growth stocks down, and a scramble out of risk assets. For crypto, this would mean the pricing in of more restrictive policy rates well into 2026. Funding costs would remain pinned at higher levels. Tempered risk sentiment would weigh down flows, and higher real yields would offer competition to Bitcoin's digital gold narrative. Doesn't sound great for bulls."

"Besson's critics say that his bias is obvious. A Treasury Secretary would welcome lower rates to ease a debt service. He counters that the 2-year yield is a market consensus forged by millions of price makers and dismisses accusations of political spin. Bullish leaning traders do like the symmetry here. A liquidity-friendly Treasury chief who becomes a liquidity friendly Fed chair could deliver the one-two punch that reflates everything from junk bonds to JPEGs. The bottom line is that Besson's words already move markets. Whether he's referring to treasuries, tariffs, regulation, or interest rates. If Trump hands him the Fed chair, those nudges could turn into a full-blown policy drive. And for crypto holders, that could feel a lot like the opening bell for a big leg up."

"In practice, trading desks map his arrival to a weaker dollar, a snap steepening of the Treasury curve once the front end dives, and a marketwide rally for stocks and crypto. A Fed that explicitly prioritizes growth over spotless price stability is the starting gun for a continued trend in the current bull run for stocks and BTC."

"But if Trump wants a loyalist who will cut hard and talk up a growth focused Fed, the market would have to repric in a hurry."

"Every speech she gives normalizes the idea that more sitting governors now lean dovish, turning up the heat on Powell and giving traders another reason to fade the dollar on any hint of weak data."

"Poly Market gives only a 34% chance that no successor is announced before December with Pal's term coming to an end in May 2026."

"Christopher Waller is a name you need on your terminal alerts because in effect, he may already be driving the bus."

"The only certainty is that the announcement itself or the choice to tease it out and keep everyone guessing for now will offer bursts of volatility."