Prediction markets indicate that the director of BlackRock is more likely to take the Fed chair under Trump

Federal Reserve Chairman Jerome Powell will end his term in May of this year. However, users of the prediction market have already started placing their bets on who US President Donald Trump will choose as his replacement.

At one point it was thought to be Kevin Hassett, but momentum has now shifted to Rick Reeder, BlackRock’s chief investment officer.

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Markets are reading Trump’s signals at Davos

Reader is currently taking surveys Powerful in forecasting platforms. BulliMarket and Calcio markets give him a 45% chance of getting the nomination, ranking him above other candidates such as Federal Reserve Governor Christopher Waller and former Federal Reserve official Kevin Warsh.

At first glance, this might seem like a normal bet, given the Trump administration’s long history of pointing out potential Fed candidates. However, in a recent interview with CNBC at the World Economic Forum In DavosTrump described the BlackRock executive as “very impressive.”

“I said we have three, but we’re down to two. And I can probably tell you that, in my opinion, we only have maybe one,” Trump said.

Speculation suggests that Reeder is the favorite in the vote.

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According to Bloomberg, Reader stands out from other competitors for several reasons. Unlike Waller or Warsh, he has never worked at the Fed, and thus is seen as less connected to the institution. Reeder also indicated his willingness to implement changes at the Federal Reserve.

However, it wouldn’t be the first time Trump has said he’s decided on a candidate.

Because Hassett lost his popularity

A month ago, Hassett stood out As the main popular option To replace Powell.

As Director of the US National Economic Council (NEC), he has consistently expressed… Express biased opinions about interest ratesclosely aligning their economic outlook with Trump’s agenda.

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Given this bias, Trump initially strongly supported Hassett as a potential candidate for Fed chairman. However, less than two weeks ago, will reconsider In the election, he indicated his preference for Hassett to remain at the head of the National Executive Committee.

According to Polymarket, the odds of selecting Hassett have since dropped to 8%.

Regardless of who ultimately replaces Powell, Trump has made it clear he wants interest rates lower. If this happens, the cryptocurrency markets can feel a faster turn.

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What the Fed’s interest rate cuts mean for Cryptocurrencies

Lower interest rates usually mean greater liquidity. For consumers, this translates into access to cheaper credit and, in many cases, a greater appetite for risk.

If the Fed continues, under new leadership, In lowering interest ratesBitcoin and Ethereum could benefit from a renewed rally.

However, the circumstances under which prices are reduced are crucial.

In recent months, the Trump administration has repeatedly challenged the independence of the Federal Reserve, which… Caused negative reactions In bond markets The spread of fluctuations in currencies encrypted.

If Trump continues to apply this pressure on the next Fed chair, the outlook for the cryptocurrency market could deteriorate.