Trump Eyes Fed Shake-Up as Markets Brace for Cuts

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 1 July 2025

⏱️ 13 minutes

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Summary

Speculation swirls around who could replace Jerome Powell as Trump hints at naming a new Fed chair early—potentially upending central bank independence. NLW breaks down the leading contenders, market reactions, Trump’s radical debt issuance ideas, and why healthcare cuts and tariffs might be the real macro shocks ahead of July 4th. Source: ⁠https://www.coindesk.com/opinion/2025/06/26/whats-next-for-tokenization⁠ Brought to you by: Grayscale offers more than 20 different crypto investment products. Explore the full suite at grayscale.com. Invest in your share of the future. Investing involves risk and possible loss of principal. To learn more, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Grayscale.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ -- ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.grayscale.com//?utm_source=blockworks&utm_medium=paid-other&utm_campaign=brand&utm_id=&utm_term=&utm_content=audio-thebreakdown)⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Enjoying this content? SUBSCRIBE to the Podcast: https://pod.link/1438693620 Watch on YouTube: https://www.youtube.com/@TheBreakdownBW Subscribe to the newsletter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://blockworks.co/newsletter/thebreakdown⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownBW

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.0	It's a daily podcast on Macro, Bitcoin, and the Big Picture Power Shifts remaking our world.
0:19.0	What's going on, guys? It is Monday, June 30th, and today we are speculating about who the next Fed Chair might be.
0:24.8	Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it,
0:28.5	give it a rating, give it a review, or if you want to dive deeper into the conversation,
0:32.1	come join us on the Breakers Discord. You can find a link in the show notes or go to bit.ly slash breakdown pod.
0:43.1	All right, friends, well, with the crisis in the Middle East, if not resolved, at least on a low ebb for now, macro has reverted back to the narratives from before the missile started flying.
0:48.3	That means debt and deficit are front of mind as Congress struggles to pass the so-called
0:52.8	big, beautiful bill. Tariffs are still
0:55.1	burbling in the background as key deadlines rapidly approach, but for the president, it means
0:59.6	his attention is now back on his nemesis at the Federal Reserve. On Friday, Trump told the media,
1:05.5	you have a guy in there who, with the stroke of a pen, could lower interest rates and save us
1:09.0	hundreds of billions of dollars a year. But he's a stupid person. I'm not sure if he doesn't understand it. It's kind of economics 101.
1:15.6	It's really more of a paper movement. You're not cutting anything. You're not cutting jobs. It's just
1:19.3	interest rates. He went on to call Powell a, quote, stubborn mule who's making a big mistake
1:23.8	before discussing his replacement. For Trump, there's only one criteria. Whoever's in there
1:28.8	is going to lower rates. He continued, if I think somebody's going to keep the rates where they are or
1:34.0	whatever, I'm not going to put them in. I'm going to put somebody that wants to cut rates. There are a lot of them
1:38.6	out there. The comments, of course, sparked another wave of discussion about who the next Fed chair
1:43.0	might actually be.
1:48.6	Powell's term isn't up until next May, but the Wall Street Journal reports the administration is considering announcing the pick early to increase the pressure to cut. The sources say that the frontrunners
1:53.7	are current Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett.
	...

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