Crypto Gloom

New Federal Reserve Chairman will cut interest rates after Trump nominates Wash.

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President Donald Trump said Friday that he will nominate Federal Reserve governor and cryptocurrency-friendly Kevin Worthy to replace Jerome Powell as chairman of the U.S. central bank.

Jerome Powell’s leadership term ends in May, giving Trump’s frequent critic of the Federal Reserve an opportunity to put his ideas about monetary policy “regime change” into practice just as the White House pushes for greater control over interest rate settings.

The U.S. President’s decision is: presentation Truth Social confirmed previous reports that Trump would nominate the 55-year-old former Federal Reserve official and Morgan Stanley banker as his preferred candidate.

The president said he has known Wash for a long time and has “no doubt” he will remain “one of the great Federal Reserve chairs, perhaps the best.”

Prediction markets and Wall Street commentators have increasingly identified Warsh as Trump’s likely choice. rising Well ahead of Friday’s announcement.

How Trump’s Fed Pick Affects Cryptocurrencies

The nomination comes at a turbulent time for digital assets. During this downtrend, the Bitcoin price fell sharply It rose from a high of $90,400 to a low of $81,300 this week.

BTC is trading at $83,967 (as of 11:26 PM ET), down 6.5% over the past seven days, despite rising 1.2% over the past 24 hours.

The Federal Reserve’s decision on interest rates has been important for cryptocurrencies because historically the asset has tended to behave like a so-called risky investment. Higher interest rates make safe yields like U.S. Treasury bonds more attractive, drawing capital away from volatile assets like cryptocurrencies.

Conversely, lower interest rates increase liquidity in the financial system, often leading investors to take on higher risks.

Wash appears to be more hawkish than Powell in that he has criticized quantitative easing and the Fed’s balance sheet expansion in the past.

Trump’s pick was noticeably more optimistic about Bitcoin than Powell, who has repeatedly downplayed the cryptocurrency’s importance to the economy.

But Warsh rejected the notion in a recent debate that Bitcoin would weaken the Fed’s ability to steer the economy, arguing instead that Bitcoin could act as a form of market discipline.

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