Trump Interviews Pro-Crypto Fed Candidate Waller for Chair Role

The race for the next Federal Reserve chair is heating up, with President Trump conducting interviews this week and next. According to the WSJ, the leading candidates include former Fed governor Kevin Warsh and former National Economic Council director Kevin Hassett, both of whom have already met with the President. However, the interview drawing significant attention from the financial technology sector is that of current Fed Governor Christopher Waller. Prediction data from Polymarket underscores Waller’s underdog status: Hassett leads with a 53% probability of nomination, followed by Warsh at 29%, with Waller trailing at just 15.3%.

Despite the long odds, Waller’s candidacy is generating notable enthusiasm within the cryptocurrency industry. Caitlin Long, founder and CEO of Custodia Bank, publicly championed Waller, stating, “The timing couldn’t be better – tomorrow is his interview for Fed chair; he deserves strong consideration.” Long highlighted Waller’s role as “one of the key architects” at the Fed in pushing for master accounts for crypto-native companies. These accounts are critical infrastructure, allowing direct access to the Fed’s payment system, and their approval would mark a major step toward regulatory integration for the digital asset sector.

The selection process is fraught with political considerations. The WSJ notes that Waller is viewed as an underdog partly because he lacks the close personal relationship with Trump that other candidates possess. Furthermore, some Trump allies reportedly view Waller’s support for an interest rate cut in September 2024—before Trump took office—as an act of disloyalty. This sentiment highlights the political pressures influencing what is traditionally a technocratic appointment.

Trump’s overarching motivation, however, appears to be a desire for a more accommodative monetary policy. He has publicly criticized current Chair Jerome Powell as “too slow” in reducing interest rates. Jaron Zhou, head of politics at prediction platform Kalshi, observed, “Waller is a distinguished academic and is already on the Fed board, but notably, he was one of the few Governors to dissent earlier in the year in favor of lowering rates. That is likely what got Trump’s attention.” The Fed has executed three rate cuts in both 2024 and 2025, with the most recent on December 10, bringing the benchmark rate down from a peak of 5.5% to 3.75%. Yet, for Trump and some economists, this level remains too restrictive.

Treasury Secretary Scott Bessent indicated that Trump will likely announce his decision in early January. The President is proceeding cautiously, reportedly regretting his 2017 appointment of Powell, whom he says he selected based on a “bad recommendation.” This caution suggests the final choice will weigh perceived loyalty and policy alignment heavily.

The potential shift in Fed leadership signals a probable dovish turn in U.S. monetary policy. David Waddell, CEO of Waddell & Associates, summarized the market expectation: “Trump’s just going to replace him with a dove. So we’re gonna get a lot of monetary stimulus. We’re going to get a lot of fiscal stimulus.” This perspective anticipates a coordinated push for economic growth through lower interest rates and government spending, a shift from Powell’s more measured, data-dependent approach even after recent cuts.

For the cryptocurrency and broader financial markets, a Waller chairmanship would represent a dual signal: a more aggressive easing cycle and a more open regulatory stance toward digital assets. His advocacy for master accounts is seen as a foundational move toward legitimizing crypto firms within the traditional financial (TradFi) system. While Waller faces significant political hurdles, his interview this week underscores the converging pressures of politics, monetary policy, and financial innovation that will define the next era of Federal Reserve leadership.