Trump Names Stephen Moran as Federal Reserve Board Member amidst Crypto Market's Continued Uptrend
The crypto market has seen a significant rebound following the appointment of Dr. Stephen Moran to the Federal Reserve Board. This development has fueled optimism that the Fed may adopt interest rate cuts similar to recent moves by the Bank of England, potentially starting as early as September 2025.
Dr. Moran, a renowned economist with a Ph.D. from Harvard, was appointed by President Donald Trump until January 31, 2026. He replaces Adriana Kugler, who resigned early. Moran is known for his pro-Bitcoin and crypto-friendly stance, having served as Chairman of the Council of Economic Advisors.
The crypto market reacted positively to Moran’s presence on the Fed board, interpreting it as a sign of potential policy easing. The Trump administration has been pressing the Fed for rate cuts to stimulate growth, but prior attempts failed. Moran’s appointment, alongside expectations of a Fed chair replacement, point to upcoming rate cuts akin to those by the Bank of England, which recently cut rates to 4%.
Rate cuts tend to lower borrowing costs and reduce the opportunity cost of holding non-yielding assets like Bitcoin, thereby fueling bull markets in crypto and gold, which often move together in risk sentiment. Moran’s pro-crypto stance and economic philosophy suggest he may support rate cuts or more accommodative monetary policy as tools to stimulate growth, aligning with Trump’s policy agenda.
While the Fed Chair replacement is pending, Moran's appointment is seen as laying groundwork for policy shifts including potential rate cuts in late 2025 to prevent economic slowdown and encourage market stability. The exact impact depends on Senate confirmation and external economic conditions, but markets are pricing in a more dovish Fed with potential easing ahead.
The wider altcoin market is also rebounding, indicating a broader positive sentiment towards the crypto space. President Trump has highlighted the nomination of a new Fed chair is in the pipeline, suggesting further potential for rate cuts in the near future. Some analysts are even predicting a potential parabolic crypto summer, signaling a bullish trend for the crypto market.
In summary, the crypto market has rallied on Dr. Moran’s appointment because it represents a pro-crypto, economically dovish shift on the Federal Reserve board that increases the likelihood of interest rate cuts in the near future, which are favorable to crypto asset prices. The appointment coincides with the Bank of England's rate cut, adding to the bullish sentiment in the crypto market.
Gold and bitcoin, being non-yielding assets, might experience a bull market due to potential interest rate cuts following Dr. Moran's appointment to the Federal Reserve Board. The economist's pro-crypto stance and the federal government's pressure for rate cuts suggest a more accommodative monetary policy, which could positively impact the prices of gold and bitcoin.
