Michelle Bowman, the vice chair of the Federal Reserve known for her pro-crypto stance, is now among the five potential candidates to succeed Jerome Powell as the head of the U.S. central bank. A strategic shift for the world’s most powerful monetary institution, at a time when Washington is reevaluating its economic policy and relationship with financial innovation.
The battle for the Fed intensifies
The Treasury Secretary Scott Bessent will personally conduct interviews, assisted by two top Treasury officials and two White House advisors. The final list will then be submitted to Donald Trump, who will select the future Fed chair before an official nomination by the Senate. Alongside Michelle Bowman, four other figures are in the running: former governor Kevin Warsh, National Economic Council Director Kevin Hassett, governor Chris Waller, and Rick Rieder, BlackRock’s director of fixed income investments. A cast where traditional finance meets profiles more open to new monetary technologies.
Persistent political tensions
This search for a new governor comes amid strong internal tensions at the Fed. For over a year, Donald Trump has openly criticized Jerome Powell, accusing him of delaying interest rate cuts. The U.S. president has even hinted at his dismissal, despite the legal protection enjoyed by Board members, revocable only “for cause”. Relations further soured after the controversial attempt to remove Governor Lisa Cook, falsely accused of mortgage fraud. The Supreme Court ruled in her favor, reinforcing the perception of an increasingly politicized Fed.
A new generation at the Fed
Last month, the Senate confirmed Stephen Miran as a new governor, replacing Adriana Kugler, who returned to her teaching position at Georgetown. Powell, on the other hand, will see his term as chair expire in May, but he can remain on the board until 2028. These successive changes pave the way for a major strategic shift for the central bank, in a context where the balance between monetary stability and technological innovation becomes a global issue.
The pro-crypto wave rises in Washington
Michelle Bowman has been advocating for a more open approach to financial regulation for several years. According to her, the Fed is “at a crossroads that will determine whether it will lead or undergo financial innovation”. She has also encouraged her teams to “hold a small amount of crypto” to better understand the sector from within, a statement unimaginable just a few years ago within the U.S. central bank.
Chris Waller shares a similar vision: he recently stated that “crypto will no longer be relegated to the margins” and mentioned the creation of a “payment account” to facilitate innovations in this field. As for Rick Rieder from BlackRock, he admitted to “dabbling in bitcoin” as early as 2021 and now believes that “investors will learn to live with volatility“. Kevin Hassett, on the other hand, holds over a million dollars in Coinbase stock, a sign of his personal commitment to the ecosystem, but also potential conflicts of interest that Americans are known for.
A Fed ready to turn the page
With several candidates openly supportive of digital assets, the next Fed presidency could mark a historic shift: from an institution long resistant, now compelled to embrace the crypto era. And what if the next major American monetary revolution came from within this time?
