New comments from Donald Trump have made crypto market traders watch the United States very closely. Trump said that Jerome Powell’s appointment as chair of the Federal Reserve may need to be checked again because it was signed using an autopen. An autopen is a machine that copies a person’s signature. Because of this, the crypto community now thinks the Federal Reserve may get a new chair soon. A change like this can affect interest rates and the amount of money moving in the economy. These things can change the crypto market very quickly.
Why a Federal Reserve Change Matters
The Federal Reserve is like the main bank of the United States. It decides interest rates. When interest rates go down, borrowing becomes cheaper. When borrowing becomes cheaper, more money enters the system. When more money enters the system, markets often move higher.
Kevin Hassett is seen as the top choice for the new chair. His comments show that he supports early and strong rate cuts. He said there is “plenty of room” to cut rates. He also said cuts bigger than 25 basis points may be possible. A basis point is a small unit used to measure interest rate changes.
Hassett said he believes the United States has strong wage growth. He also said new technology, including AI, is helping workers produce more. He said this period may be similar to the 1990s, when the economy grew quickly. Because of these reasons, he believes interest rates can come down without causing problems. If Hassett becomes the new chair, the Federal Reserve may cut rates sooner than people expect. This is important because most markets respond to rate cuts. Crypto usually moves the fastest when the amount of money in the system increases.
How Hassett’s Views Affect the Crypto Market
Hassett also said he would use his own judgment even if Trump shares his views. He said Trump trusts his decisions. He also said he would go where Trump tells him. This shows that both may agree on early rate cuts.
If interest rates fall soon, many things could change:
- •Borrowing becomes cheaper.
- •More people and companies can take loans.
- •More money moves into the economy.
- •Markets usually rise when more money is available.
Crypto often reacts faster than stocks because it depends heavily on the amount of money moving in the market. This is why many traders believe a new Federal Reserve chair could be good for the crypto market. Right now, some platforms already show a 95% chance of a rate cut. This means many traders think changes are near.
This may explain why crypto prices stayed stable even when trading activity was slow. Some investors may already be preparing for easier money conditions in the next months.
Why This Moment Is Important for Crypto Market
A change at the Federal Reserve is always important. But this moment may matter more than usual. The United States is dealing with higher prices, strong wages, and fast growth in new technology. Hassett believes these factors allow for cuts without major risk.
If interest rates fall, more money can enter the economy. This often helps Bitcoin and other major crypto assets. Large investors usually move into crypto when they expect lower interest rates because it becomes easier to take positions.
Hassett’s comments show a clear pattern. He believes wages are strong and AI helps the economy grow. He believes there is room for fast cuts and it can start soon. When we connect all these points, the message is simple: A new Federal Reserve chair who agrees with Trump may lower rates earlier than expected.
If a new chair is named before Dec. 25, crypto traders may react before any actual rate cut happens. Even the expectation of cheaper borrowing can push interest in crypto higher. The next few weeks will show if this change becomes real. For now, the crypto market is watching closely because a new Federal Reserve chair could bring more money into the system, which often helps crypto prices rise.