The Federal Reserve Chairman Drama: Which of the Four Candidates Will Rise to Power?

Trump recently changed his tone. Originally discussing three candidates, he suddenly announced that he is interviewing "three to four" potential contenders. This change has reignited market speculation, with many traders and investment institutions closely watching for developments, expecting a decision "soon."

"Each of them is very capable," Trump was vague. Although he did not commit to a final decision before the end of the year, he indicated that there would be a conclusion "within the next few weeks." He repeatedly emphasized that his expectations for the new chair are very clear: to significantly cut interest rates and bring mortgage rates down to "1% or even lower." The market is well aware of what this means for the dollar and global asset flows.

Hasset and Waugh have been considered favorites—Trump straightforwardly said, "Both Kevins are good." But a new variable has emerged. Fed Governor Waller has recently been gaining frequent meeting opportunities and was praised by Trump as "very capable, having been at the Fed for a long time"; Vice Chair Bowman was also publicly praised, but whether she is on the shortlist remains uncertain.

Four names have surfaced, and the most critical central bank leadership baton in the world is about to change hands. The countdown to a major shift in monetary policy has begun, and this will have a significant impact on liquidity in the crypto space and the pace of mainstream asset allocation.