Crypto Traders Eye Judy Shelton for Fed Chair Amid Tight Race

Amid the intensifying race for the Federal Reserve chair, crypto traders are increasingly placing bets on Judy Shelton, former advisor to Donald Trump. This shift occurs even as the probability of Kevin Hassett, previously the frontrunner, declines.

Rising Odds for Judy Shelton

Kalshi data reveals a 5% increase in bets on Shelton, while Hassett's odds have fallen to 38% from a high of 85% last December.

Shelton's chances are also up on prediction platform Polymarket, with a current 3% probability of her being nominated by Trump. Other contenders include Kevin Warsh and Chris Waller, holding 36% and 13% odds, respectively. Despite being on a shortlist with Rick Rieder, Shelton shares a 5% chance with him.

Awaiting Trump's Decision

Trump has interviewed potential candidates, including Rieder, Warsh, and Waller, yet remains silent on his choice. Reports indicate Trump may announce his decision by February 1, with Kalshi data suggesting an 82% likelihood of this timeline.

Polymarket shows a 79% chance of an announcement by January 31, potentially before the January FOMC meeting on the 28th.

Additionally, the market is closely monitoring Jerome Powell's future on the Fed board, as his resignation could grant Trump a majority, influencing interest rate policies.