Trump Backs Kevin Hassett as Next Federal Reserve Chair After Powell - What It Means for Crypto
Washington's monetary chessboard just got a new piece—and digital asset markets are watching every move.
The Powell Era's Potential Endgame
Jerome Powell's tenure at the Federal Reserve might be entering its final chapters. Former President Donald Trump has publicly thrown his support behind Kevin Hassett—a former White House economic advisor—as the next Fed chair. The timing couldn't be more critical for cryptocurrency markets that have spent years navigating Powell's interest rate rollercoaster.
Hassett's Crypto Conundrum
Unlike Powell's cautious, data-dependent approach, Hassett brings a different economic philosophy to the table. His background suggests potential openness to innovation—but also traditional fiscal conservatism. For Bitcoin and Ethereum traders, this signals possible regulatory shifts. Will digital assets face friendlier monetary policy, or stricter oversight? The uncertainty alone could trigger volatility.
Interest Rates in the Crosshairs
Every Fed chair leaves a fingerprint on interest rates—and crypto prices feel every tremor. Powell's rate hikes squeezed liquidity from risk assets; his potential successor might chart a different course. Lower rates traditionally fuel crypto rallies as investors chase yield. Higher rates? They send capital fleeing back to traditional havens. The chairmanship isn't just about monetary policy—it's about market psychology.
The Institutional Domino Effect
Wall Street's crypto embrace didn't happen in a vacuum. Powell's Fed created the economic conditions that pushed institutions toward digital assets. A new chair could accelerate that trend—or slam the brakes. ETF approvals, banking partnerships, and corporate treasury allocations all hinge on regulatory winds blowing from the Eccles Building.
Decentralization's Ultimate Test
Here's the ironic twist: cryptocurrency was built to bypass central bankers entirely. Yet today, traders hang on every word from potential Fed nominees. The system designed to replace monetary authorities now watches them obsessively—proving that in finance, old habits die hard, especially when there's money to be made speculating on those habits.
The Fed chair speculation game continues—because nothing moves markets like guessing who'll control the money printer next. Just ask any crypto trader refreshing their portfolio every time a political endorsement drops.
Trump cuts interviews and breaks the Fed search plan
Kevin’s sudden rise into public view cut through a tightly built interview plan. Candidates were told that meetings scheduled for Wednesday with Vice President JD Vance were canceled. No public reason was first given.
Then the Wall Street Journal later said it was due to a scheduling conflict for JD and added it was not clear if the interviews would be reset. Behind that move, Treasury Secretary Scott Bessent had already narrowed an original group of eleven candidates down to five. Trump’s advisers had planned more interviews this week so they could present a slate of finalists. Trump’s comment that the list was already down to one undercut that entire process.
The White House followed with a statement: “The truth is nobody knows who President Trump’s next pick for the Fed Chair will be until he makes the announcement himself. Everything until then is pure speculation.”
Trump has spent months talking with aides and allies about who should replace Powell. He has asked people directly who they think should take the job. He has also told several of those same people that he regrets choosing Powell in the first place. Trump has blamed former Treasury Secretary Steven Mnuchin for convincing him to name Powell as Fed chair.
People familiar with the process allegedly said Trump could still change course on Kevin, but said that outcome is unlikely without pressure from Scott, who has resisted repeated appeals from Trump to take the role himself. For Scott, pushing one name carries heavy risk if Trump later turns on that choice.
Markets track pressure and politics around the Fed job
The next Fed chair will inherit a rate committee split between fears of job losses and fears of persistent inflation. Trump continues to press the central bank for lower borrowing costs. Kevin has sided with Trump in calling for more rate cuts this year, though he has not aimed personal attacks at Powell the way Trump has.
Any nomination will land in a Republican‑controlled Senate, where Kevin would still need to answer for his ties to Trump while promising to protect the independence of the central bank. Investors will watch whether that pledge holds under political pressure tied directly to the White House.
Kevin has already written about what happens when Trump turns on past economic picks. In a 2021 book, Kevin described what followed Steven’s role in backing Powell for the Fed job. Kevin wrote that once Powell took the seat, Steven absorbed criticism from Trump at the start of nearly every meeting.
Kevin wrote, “I will always remember how graceful Mnuchin was under attack.” That history now hangs over the current process as Trump moves toward naming the person who will control the future path of U.S. interest rates.
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