In a significant announcement at the White House on Tuesday, President Donald Trump introduced Kevin Hassett as a “potential Fed chair”. This news set prediction markets ablaze, pushing the odds of Hassett’s appointment to 85% on Kalshi—a marked increase from approximately 66% just hours before.
During a cabinet meeting, Trump hinted that the selection process for the Federal Reserve Chair has been streamlined, stating, “We probably looked at 10 [candidates], and we have it down to one”. This comment indicates a sprint toward a decision as Trump’s tenure continues to navigate the shifting landscape of economic policy.
Hassett’s current role as director of the National Economic Council, a position he was appointed to in January 2025, makes him a well-placed candidate. His previous experience as chairman of the White House Council of Economic Advisers from 2017 to 2019 adds to his credentials. Notably, Hassett also holds a $1 million stake in Coinbase, reflecting his support for the cryptocurrency sector, which could resonate well with advocates seeking a more crypto-friendly Federal Reserve.
The search for a new Fed chair has been spearheaded by Treasury Secretary Scott Bessent since Labor Day, narrowing down an initial list of 11 candidates to five finalists. These contenders include former Fed governor Kevin Warsh, current Fed governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder. This week, the finalists are set to meet with Vice President JD Vance and other White House staff as the administration inches closer to a formal announcement.
In recent weeks, former front-runner Warsh appears to have lost momentum, with insiders suggesting he no longer views himself as a leading candidate. This shift intensifies focus on Hassett, especially following Trump’s pointed criticisms of current Fed Chair Jerome Powell, whom Trump has derided as “grossly incompetent” and hinted he would “love to fire.” Powell’s term will conclude in May 2026, signaling a near-term transition to new leadership.
For the cryptocurrency community, the implications of a Trump-selected Fed chair could be monumental. While the Federal Reserve does not directly regulate cryptocurrencies, its monetary policy profoundly influences market conditions—specifically, lower interest rates which historically benefit crypto assets. Hassett has openly criticized the current rate policy as excessively high, a stance that could align him with the interests of digital asset advocates.
The Fed also has oversight of banking regulations, which can affect how cryptocurrency firms interact with traditional financial institutions. Bessent previously articulated the administration’s desire for a Fed leader who works “quietly behind the scenes” for the American populace, echoing sentiments Hassett shared in a recent interview, indicating that Trump’s nominee would be focused on facilitating access to lower-rate loans and mortgages for Americans.
The market has already begun to react to the buzz surrounding Hassett’s candidacy, evidenced by a notable decline in long-term interest rates last week. Hassett maintains that his approach could sustain market credibility, although some former colleagues have raised concerns about his ability to assert independence from Trump—a crucial factor in maintaining the Fed’s integrity and effectiveness.
The political and economic landscape is poised for a shake-up as Trump approaches his decision early next year. With talk of potential nominees heating up, eyes are squarely on Hassett as a figure capable of both embracing the needs of the crypto industry and navigating the complex waters of U.S. monetary policy.
The intricacies of this unfolding narrative promise excitement ahead, not just for U.S. economic policy but for the broader global financial ecosystem as well.
