# Daily Vecsignal 51 - The new frontrunner for Fed chair is pro-crypto.

By [VECS Smartframe](https://paragraph.com/@vecsmartframe) · 2025-12-04

news, vecsian, investment, finance, economy, fed, crypto, bitcoin, trending, update, information, stock, market

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**Pro-Crypto Candidate Emerges as Top Contender for Next Fed Chair**  
Bitcoin’s recent rebound stems from rising market expectations of a December Fed rate cut, dollar easing, and focus shifting to Jerome Powell’s successor ahead of his term’s end in May 2026.

Odds of a 25-bps cut now sit at **80%+**, weakening the dollar for nine consecutive days and helping BTC recover from **$84,000–$87,000** to **$93,000** following November’s sharp selloff. Spot prices hover near **$92,300**, with 10-year Treasury yields steady at **4.1%**—a backdrop historically favorable for risk assets.

Per _Reuters_, President Trump plans to name a nominee in early 2026. Kevin Hassett—former White House economist _and_ ex-Coinbase advisor—leads the race, alongside Christopher Waller, Michelle Bowman, Kevin Warsh, and BlackRock’s Rick Rieder.

Markets lean toward Hassett due to his _dovish_ stance: he’s stated inflation is “coming down” and supports faster cuts—a posture that could pressure the dollar if adopted.

Powell remains a Fed governor until **January 31, 2028**, though his chairmanship ends May 2026. Thus, near-term policy remains under his control, while markets price in _expectations_ of his successor.

BTC’s bounce isn’t just technical—it’s fueled by _short-covering_, dollar weakness, and November’s massive outflows creating accumulation room. Yet without sustained confirmation (steady ETF inflows, positive macro data), this rally remains fragile.

Critically: while leadership transition narratives boost _risk-on_ sentiment, real impact arrives only _post-confirmation_. Until then, markets operate in _shadow-chair_ mode—pricing assets based on anticipated policy bias.

  

**VECS Commentary**  
Anticipating a pro-crypto Fed chair isn’t mere _hype_—it reflects a structural shift: crypto is now viewed as a **systemic component of monetary policy**, not just a speculative asset. Yet caution is warranted: expectations can shift rapidly—especially if inflation data reaccelerates or the Senate rejects the nominee. What truly matters isn’t _who_ gets appointed—but **whether liquidity keeps flowing**. Focus on _net ETF flows_, _dollar index_, and _real yields_—not political headlines.

  

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\*\*This news was obtained and summarized from various sources on the internet.

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*Originally published on [VECS Smartframe](https://paragraph.com/@vecsmartframe/daily-vecsignal-51)*