Bitcoin Updates Today: Trump’s Federal Reserve Nominees Face Challenges with Inflation, Bitcoin, and Worldwide Instability

The process to select the next leader of the Federal Reserve is accelerating as President-elect Donald Trump narrows down his choices to replace Jerome Powell, whose term concludes in May 2026. Treasury Secretary Scott Bessent has stated that Trump is considering five finalists, which include current Fed board members Michelle Bowman and Christopher Waller, former governor Kevin Warsh, and private sector executives such as BlackRock’s Rick Rieder, as reported by a

. The final decision, anticipated by the end of the year, will require Senate approval, where Republicans hold the majority, according to a .

During this transition, Powell continues to steer the central bank through its dual objectives amid ongoing economic challenges. His upcoming address on Friday is expected to touch on recent figures, such as October’s 0.3% increase in core CPI inflation, which still exceeds the 2% goal, according to a

. Markets are largely anticipating a 25-basis-point rate reduction at the December meeting, and the Fed’s updated “dot plot” may indicate more rate cuts in 2025, the preview suggests. Nevertheless, Powell has stressed the importance of weighing inflation management against job growth, remarking, “We’re not on a predetermined course.”

The Fed’s policy decisions are also being shaped by outside influences. Republican Senator Cynthia Lummis has introduced a contentious proposal to sell a portion of the Fed’s gold holdings to acquire 1 million

, with the goal of financing Trump’s planned cryptocurrency reserve without raising the federal deficit, as detailed in a . Lummis claims this would balance the Fed’s books, but critics, including JPMorgan’s Karen Ward, argue the bill is unlikely to pass due to significant political and economic concerns, according to a .

In a separate development, the Fed has unveiled changes to its bank stress testing procedures following legal action from Wall Street organizations. The revised approach will make models and scenarios available for public input, aiming to ease compliance for major banks while still monitoring risks, as reported by a

. However, this move has caused disagreement within the Fed, with Governor Michael Barr expressing concerns that it could weaken the reliability of the tests.

International markets remain cautious as the Fed’s policy moves intersect with Trump’s broader economic strategies. Analysts at JPMorgan expect the central bank might halt rate reductions in 2025 to evaluate the effects of Trump’s initiatives, including new tariffs that could hinder global economic growth. Meanwhile, Bessent has called on Japan to give its central bank greater leeway in tackling inflation, hinting at possible friction with Tokyo’s current monetary approach, according to a

.

As the search for the next Fed chair approaches its conclusion, the selected leader will face a challenging environment: managing inflationary trends from Trump’s fiscal plans, responding to international economic shifts, and addressing mounting interest in cryptocurrency adoption. The decision will have lasting implications for U.S. monetary policy, with investors closely monitoring for indications of Trump’s intended direction for the Fed after Powell’s tenure.