Trump Picks Kevin Hassett As Next Fed Chair Nominee After Powell - A Potential Paradigm Shift for Crypto?
Washington's monetary throne gets a new contender. Kevin Hassett—economist, former Trump advisor, and now the surprise nominee to lead the Federal Reserve after Jerome Powell's term. The political chess move sends immediate ripples through traditional finance corridors.
The Crypto Angle: Reading the Tea Leaves
Hassett's public record shows a nuanced, if not fully bullish, stance on digital assets. He's acknowledged Bitcoin's potential as a 'store of value' and criticized heavy-handed regulatory overreach that stifles innovation. For an industry perpetually parsing Fed-speak for hints on interest rates and liquidity, this nomination isn't just personnel news—it's a signal flare.
A Fed less obsessed with controlling the entire monetary stack could mean more breathing room for decentralized alternatives. Think softer rhetoric on CBDCs as competition, a more critical eye on bank-led stablecoin dominance, and perhaps a slower pace on regulation-by-enforcement. It's the policy equivalent of shifting from a wall to a fence.
Market Mechanics in the Crosshairs
Traditional markets will obsess over Hassett's views on inflation targets and balance sheet runoff. Crypto markets, however, will watch for any sign the Fed's infamous 'printing press' narrative—a key driver of Bitcoin's hedge appeal—gets a new operator's manual. Does he see dollar debasement as a real risk? That's the multi-trillion-dollar question for hard asset proponents.
The bottom line: Central bank leadership changes are always about the direction of money. This one feels different—it's about the very definition of money itself. And in that debate, crypto just found a potentially more sympathetic ear at the highest level, which is more than most Wall Street lobbyists could buy with their usual bag of tricks.
Trump Picks "Kevin Hassett" as Next Fed Chair
President Trump has recently given hints that he has decided on the next Federal Reserve Chair, and it may be announced early in 2026. Kevin Hassett, the current director of the WHITE House National Economic Council and the previous director of the Council of Economic Advisers, under Trump, comes out as the top candidate.
Source: The Kobeissi Letter X
Hassett has an all-time high odds of 81% at Polymarket, a prediction market site, compared to his odds of 40% in November. Such a rush is an indication of high trader confidence in his nomination and an increase in market expectations.
Hassett is a pro-growth supporter and has co-written Dow 36,000 and prefers policies that promote economic growth by cutting taxes and deregulation. His possible appointment is likely to change the course of the Fed towards more vigorous rate reductions and less independence.
Policy Shifts on the Horizon: Federal Reserve Rate Cuts Ahead
Hassett may shift the U.S. policy dramatically in case he becomes the Fed Chair:
Analysts are forecasting quicker interest rate cuts, along with Fed reforms that are governed by rules, directed at raising transparency. This is unlike the inflation-conscious cautiousness of Jerome Powell.
Together with possible Fed rate cuts, Treasury Secretary Scott Besset promised big tax refunds in Q1 2026.
These refunds are included in a wider fiscal stimulus, such as potential dividend-like payouts based on Trump-era tax cuts that historically paid out some $1,700 per filer.
Source: X
The rate cuts, tax refunds, and possible stimulus check may be similar to the 2020 fiscal response that boosted equities by 20-30% but also raised inflation to 7%.
Investors and other traders will be considering short-term returns against long-term risks such as asset bubbles and inflationary pressures.
Reactions in the market and speculation.
There is already a market reaction to the possible nomination of Hassett:
The optimism has been in the equity and gold markets, and social media posts are showing excitement about the looser monetary policy.
Meanwhile, there are also warnings of threats to the stability of the economy, including the increase in prices and unemployment.
The high odds of Hassett at Polymarket indicate how much the participants of the prediction market are convinced of his appointment.
Traders are looking forward to his policies potentially leading to asset price booms in the short term, and there are still debates on the long-term impacts.
Trump Announcement Today
To further fuel the market speculation, on December 3, 2025, President Trump has a big announcement to make at the Oval Office at 2.30 PM ET. The speculations are on immigration reforms in labor markets to other economic initiatives.
Source: X
The most recent announcements, such as a promise of $6.25 billion to U.S. children and agreements to lower the prices of weight-loss drugs, indicate that pro-growth, populist policies are still being emphasized.
Conclusion
The probable appointment of Kevin Hasset as Fed Chair can be viewed as an indication of a new era of monetary policy under Trump, which will entail aggressive growth policies along with fiscal stimulus. The markets must be ready to receive short-term volatility and long-term economic arguments.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
