The race to become the next chair of the U.S. Federal Reserve has reached a fever pitch, with the Trump administration signaling that a decision could be announced before Christmas. As Treasury Secretary Scott Bessent wraps up a second round of interviews, all eyes are on Kevin Hassett, the White House National Economic Council director, who has emerged as the clear frontrunner in what many are calling the most consequential central bank appointment in years.
According to Reuters, Bessent confirmed on November 26, 2025, that the selection process had narrowed from an initial slate of eleven candidates to just five. The remaining contenders, besides Hassett, include former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller, Governor Michelle Bowman (who also serves as vice chair for supervision), and Rick Rieder, the global fixed-income chief at BlackRock. "But it's his prerogative, whether it's before the Christmas holidays or in the new year. But I think things are moving along very well," Bessent told CNBC, hinting at the urgency and importance of a timely decision.
Bloomberg and Benzinga both reported that Hassett is not only the leading candidate but also enjoys the full trust of President Donald Trump and his inner circle. Hassett, who previously led the Council of Economic Advisers during Trump’s first term, is seen as a "close ally" who would faithfully carry out the administration’s vision for the Federal Reserve—namely, a more aggressive approach to lowering interest rates. Betting markets have taken notice: on Polymarket, 52% of bettors predicted a Hassett nomination, while Kalshi punters put the odds even higher at 55%.
Why does this appointment matter so much? The Federal Reserve, often described as the most powerful unelected institution in global finance, sits at the center of U.S. and world economic policy. The chair’s decisions ripple through everything from mortgage rates to global stock markets, and with Jerome Powell’s term set to expire in May 2026, the stakes could hardly be higher. The Fed has already cut rates at its last two meetings, bringing the benchmark rate into the 3.75% to 4.00% range. Markets are now bracing for the possibility of another cut in December, even as internal divisions at the central bank grow sharper over the competing risks of inflation and a weakening job market.
Hassett’s policy stance is anything but ambiguous. In a November interview with Fox News, he declared, "I would be cutting rates right now, because the data suggests that we should." This puts him in direct contrast to the current chair, Jerome Powell, who has favored a more cautious “higher for longer” approach. Trump has not been shy about his dissatisfaction with Powell, whom he once called “grossly incompetent” and said he would “love” to fire. The president has repeatedly criticized Powell for not cutting interest rates quickly enough, publicly calling for them to drop to "1% or 2%," a far cry from current levels.
But there’s more to Hassett’s candidacy than just his dovish stance on rates. According to Bloomberg and additional reporting from crypto-focused news outlets, Hassett has significant ties to the digital asset world. He chaired the White House digital asset working group inside the National Economic Council, where he played a key role in crafting the administration’s 2025 summer report on crypto policy. This report included recommendations on banking access, a Strategic Bitcoin Reserve, stablecoins, taxation, and illicit finance. In June 2025, he disclosed a personal stake in Coinbase worth at least $1 million—a detail that sets him apart from previous Fed chairs, whose portfolios have typically been oriented toward traditional fixed income.
This crypto connection hasn’t gone unnoticed by the markets. As one analyst put it in a recent Bloomberg piece, "If Trump nominates Hassett and the Senate confirms him, markets will be staring at a Fed Chair who is explicitly aligned with the White House’s push for lower borrowing costs and easier liquidity, exactly the environment that has historically fueled parabolic crypto rallies." In other words, a Hassett Fed could mean not just a faster path to lower rates, but also a regulatory environment far more friendly to digital assets like Bitcoin and Ethereum.
The selection process, by all accounts, has been thorough and, in true Trump fashion, dramatic. After Bessent’s interviews conclude, the finalists will meet with White House Chief of Staff Susie Wiles and Vice President JD Vance, who is himself a vocal supporter of Bitcoin. Only then will Trump conduct his own in-person interviews before making the final call. There have even been rumors—floated by people close to the process—that Trump could ask Bessent to take on both the Treasury Secretary and Fed Chair roles, though for now, Hassett remains the clear betting favorite.
What about the other candidates? Kevin Warsh, a former Fed governor, is seen as a more traditional pick but lacks the close personal relationship with Trump that Hassett enjoys. Christopher Waller and Michelle Bowman, both current governors and Trump appointees, have advocated for rate cuts since the summer, even dissenting at the July meeting in favor of easing. Rick Rieder, meanwhile, brings formidable private-sector experience from BlackRock but is considered an outsider compared to the others.
For the broader economy, the outcome could be transformative. As ETMarkets.com notes, the Trump administration is seeking a candidate who will "simplify things" and "move the Fed back into the background, like it used to do, calm things down and work for the American people." That philosophy—if realized—could mark a significant shift from the activist central banking seen in recent years.
Yet, as Bloomberg cautions, nothing is official until the nomination is made public. Trump is famous for keeping his options open until the last minute, and the White House has called any discussion about the Fed nomination speculative until the president makes an official announcement. Still, the momentum behind Hassett, both in the betting markets and among Trump’s advisers, is unmistakable.
With the Fed already cutting rates and the economy at a crossroads, the next chair will wield enormous influence over monetary policy, financial markets, and even the future of digital assets. Whether Hassett’s blend of pro-growth economics and crypto expertise is what the moment demands remains to be seen, but one thing is certain: the world is watching, and the decision could come any day now.
