Donald Trump Signals Upcoming Fed Chair Announcement, Vows Further Interest Rate Cuts

Jakarta, Pintu News – US President Donald Trump said on Tuesday that he will soon announce his choice to replace Federal Reserve Chairman Jerome Powell. He claimed that the new Fed chairman will make more interest rate cuts.

However, Trump’s statement that he is not worried about the weakening US dollar sent Bitcoin prices down and gold prices to new record highs.

Donald Trump Promises Interest Rate Cuts After New Fed Chair

In a speech in Iowa on January 27, US President Donald Trump stated that he would soon announce a replacement for the Federal Reserve Chairman and predicted a significant interest rate cut once the new chairman takes office. Trump also emphasized economic success, job growth, and tax cuts in his speech.

Read also: Jerome Powell’s speech will determine the direction of crypto? Here are market expectations ahead of the Fed meeting

“If we had a great Fed chairman – and I think we will – I would announce it immediately. You’ll see interest rates go way down,” Trump said.

These remarks come amid speculation regarding a replacement for Jerome Powell, whose term expires in May 2026. Trump has repeatedly criticized Powell for not being aggressive enough in cutting interest rates, even though the Fed has been gradually cutting them through the end of 2025 to a range of 3.5%-3.75%.

Trump has long pushed for low interest rates to keep mortgage payments down, boost economic growth, and align with his administration’s policies. However, the Fed and Powell remain cautious due to trade tariffs and geopolitical tensions.

It is expected that the Fed will keep rates on hold in today’s FOMC meeting. The CME FedWatch tool shows that the market expects a 97% chance that the Fed will not cut rates.

Bitcoin and crypto market participants will be watching for any guidance on the next interest rate cut. The chances of a rate cut by the Fed in June have increased ahead of this FOMC meeting.

Potential Candidates to Replace Fed Chair Jerome Powell

Donald Trump has narrowed down the list of candidates to replace Jerome Powell in recent weeks. The leading four candidates are Rick Rieder (BlackRock Chief Investment Officer), former Fed Governor Kevin Warsh, White House economic advisor Kevin Hassett, and Fed Governor Chris Waller.

The prediction market favored BlackRock’s Rick Rieder with a 48% chance after Trump’s praise, followed by Kevin Warsh with 25%. Rick Rieder, who is reportedly Trump’s favorite for the Fed Chair position, stated that interest rates could be cut by 100 basis points.

Trump’s statement reignited the debate about the balance between political influence and the independence of the Federal Reserve. Powell himself has defended the Fed’s independence amid growing pressure, including from the scrutiny of the US Department of Justice.

The White House has not confirmed the exact timetable or the name of the candidate to be announced. However, Treasury Secretary Scott Bessent said Trump could announce the name of the Fed Chair as soon as next week, coinciding with the January FOMC meeting.

Meanwhile, the US economy is showing resilience, characterized by recent strong GDP and jobs data. This prompted the Fed to hold off on cutting interest rates. Global markets also continue to watch for signals on the direction of monetary policy in the coming months.

Read also: Altcoins Potentially Strengthen Ahead of Monthly Close – Will Altseason Happen Soon?

Bitcoin weakens after Trump’s remarks on weakening US dollar

The US dollar exchange rate fell to its lowest level in four years after Donald Trump’s statement that he is not worried about the recent decline in the value of the dollar. This signals that the Trump administration is comfortable with a weaker dollar to support exports.

The US dollar index (DXY) moved around 96. Meanwhile, the yield on 10-year US Treasury bonds stabilized at around 4.24% on Wednesday. As a result, gold prices surged through $5,200 and set a new record high.

On the other hand, Bitcoin price trimmed its previous gains and moved around $88,000. In the last 24 hours, its lowest and highest prices were at $87,228 and $89,427, respectively. Trump’s previous statement about cutting interest rates had boosted Bitcoin prices.

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Reference:

• Coinpedia. FED News: Trump Signals Major Interest Rate Cuts with New Fed Chair. Accessed on January 28, 2026
• Coingape. Donald Trump Hints at New Fed Chair Announcement, More Interest Rate Cuts. Accessed on January 28, 2026