- Decision on next Federal Reserve Chair.
- Potential inflation risk from tariff policy.
- Markets react to Trump’s economic policies.
As President Trump nears the selection of a new Federal Reserve Chair, his demands for rate cuts and tariffs highlight potential inflationary challenges for the U.S. economy.
The Federal Reserve’s leadership shift could influence interest rates, inflation, and risk assets globally, impacting markets like Bitcoin and Ethereum.
Trump’s Policies Raise Inflation Concerns Amid Fed Chair Choice
President Trump’s focus on rate cuts paired with an insistence on higher tariffs raises questions about inflation control. The outgoing Chair’s replacement will navigate these intensified challenges. Kevin Hassett, a leading candidate, faces scrutiny from analysts questioning the policy coherence.
A politically influenced Fed Chair could lead to market volatility given concerns about policy credibility. Financial observers note implications for U.S. interest rates and inflation dynamics, affecting risk assets including cryptocurrencies like Bitcoin.
Market reactions include a cautious outlook. Investors are watching for signals on how tariffs and rate policies will influence inflation and overall economic performance. “The next Fed Chair must prioritize a strategy that encourages growth without losing sight of inflation risks,” said Kevin Hassett, Former Chairman of the Council of Economic Advisers.
Political Influence on Fed Sparks Market Uncertainty
Did you know? The last time the Federal Reserve faced intense political pressure, markets saw increased volatility, reminding stakeholders of the potential challenges of intertwining economic policy and political strategies.
According to CoinMarketCap, Bitcoin (BTC) is trading at $90,483.55, reflecting a market cap of $1.81 trillion with a decline of 2.50% over 24 hours. Market dominance stands at 58.63%, while the current trading volume shows a reduction of 12.85%, indicating fluctuating investor sentiment.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 14:30 UTC on December 5, 2025. Source: CoinMarketCapThe Coincu research team suggests that continued political influence over Fed policies could create uncertainty in financial markets. The ongoing tariff policy may lead to complex regulatory discussions, potentially affecting the investment climate for crypto assets and challenging existing economic frameworks.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/trump-fed-chair-inflation-concerns/



