Trump Demands Immediate Rate Cuts from Next Fed Chair as Crypto Traders Bet on 2026 Easing

U.S. President Donald Trump has once again stirred the waters of monetary policy by declaring that the next chair of the Federal Reserve must immediately cut interest rates. While the political chess game over the Fed’s leadership is just beginning, crypto traders are already betting on how many times the central bank will lower rates in 2026.

Trump Sets Rate Cuts as Litmus Test for the Next Fed Chair In an interview with Politico, Trump said that an immediate rate cut will be a key requirement for whoever replaces Jerome Powell as Fed Chair. This statement strengthens his push for cheaper borrowing and economic growth. According to prediction market Polymarket, Kevin Hassett, White House economic advisor and long-time supporter of rate cuts, has a 77% chance of being nominated by Trump. The president could announce his pick as early as the beginning of 2026. Trump recently mentioned Hassett as a strong candidate and backed his proposal for the Fed to cut rates by 25 basis points at its upcoming FOMC meeting.

Trump Moves to Gain Control Over the Fed Crucially, Trump will be able to replace outgoing Fed Governor Stephen Miran, whose term expires in January. If Powell steps down early—as many past chairs have—Trump could secure a majority on the seven-member Fed board. Three Fed officials — Chris Waller, Michelle Bowman, and Stephen Miran — have already expressed openness to rate cuts, aligning with Trump’s monetary stance.

Crypto Traders Are Already Betting on 2026 Cuts On Polymarket, traders are making predictions about Fed policy for next year: 🔹 23% chance of three rate cuts (totaling 75 basis points)

🔹 20% chance of four cuts

🔹 18% and 12% odds for five or more cuts In 2026, the Fed chair will preside over just three of eight FOMC meetings — unless Powell resigns before his term ends in May.

Rate Cuts Will Depend on Economic Data — and Trump’s Pressure Powell is expected to state during the next press conference that future rate cuts will be data-dependent. Key inflation data from October and November will be released on January 14, two weeks ahead of the next FOMC meeting on January 28. Meanwhile, Hassett warned that it would be “irresponsible” to set a six-month monetary plan in advance. He believes policy should stay flexible and react to incoming data.

One-Minute Summary: 🔹 Trump demands immediate rate cuts from the next Fed chair

🔹 Kevin Hassett emerges as the leading candidate for the job

🔹 Crypto traders bet on 3–5 rate cuts in 2026

🔹 Trump could gain majority control over the Fed board

🔹 Fed’s decisions will depend on economic data and January inflation reports

#Fed , #TRUMP , #interestrates , #fomc , #Powell

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