The race to lead the U.S. Federal Reserve has reached a fever pitch as President Donald Trump zeroes in on a successor to current Chair Jerome Powell. At the center of speculation is Kevin Hassett, director of the White House’s National Economic Council, whose deep ties to both the Trump administration and the cryptocurrency industry have made him a lightning rod for both support and criticism. As the process nears its conclusion—with an announcement expected before Christmas, according to Bloomberg and CNBC—financial markets, political observers, and crypto enthusiasts are watching closely, aware that the decision could reshape U.S. monetary policy and the regulatory landscape for digital assets.
Trump’s dissatisfaction with Jerome Powell has been anything but subtle. Over the past year, the president’s frustrations have spilled into public view, with repeated criticisms of Powell’s perceived slowness in cutting interest rates. According to Bloomberg, Trump has explored whether he could remove Powell, whose current term as Fed Chair ends in May 2026, before its conclusion. The president’s desire for a more aggressively dovish approach—one that would lower borrowing costs to stimulate economic growth—has driven his search for a new leader at the central bank.
Enter Kevin Hassett, a longtime Trump ally and a figure whose economic philosophy aligns closely with the president’s. Hassett, who led the White House digital asset working group and has served as a Distinguished Visiting Fellow at the Hoover Institution, has consistently advocated for deeper and faster rate cuts. "My concern is mainly labor market, in terms of our dual mandate. So I’m advocating for a rate cut at the next meeting. You may see a more of a meeting-by-meeting approach once you get to January," said Fed Governor Christopher Waller, another contender, highlighting the internal debate over the Fed’s future direction.
Hassett’s candidacy has gained real momentum in recent weeks. Prediction markets tracked by Kalshi have given him a 55-56% chance of securing the nomination, a figure that surged by 15% in just 24 hours, as reported by multiple outlets. This spike places him well ahead of other finalists, including former Fed governor Kevin Warsh, current governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder. According to sources close to the process, Treasury Secretary Scott Bessent has been quietly conducting interviews with these candidates since the summer, with the latest round wrapping up just days ago.
The financial markets have not been immune to the shifting winds. News of Hassett’s frontrunner status sent Treasury yields below 4 percent for the first time in a month, signaling investor expectations of a more dovish Fed. According to CNBC, the market broadly anticipates that a Chair with Hassett’s background could boost institutional acceptance and regulatory clarity for digital assets—a prospect that has crypto markets especially excited.
But it’s precisely Hassett’s crypto connections that have sparked heated debate in Washington. As reported by Bloomberg and 99Bitcoins, Hassett owns between $1 million and $5 million in Coinbase stock, and he earned about $50,000 from the company for his advisory role on its Academic and Regulatory Advisory Council. Coinbase, which officially announced its Global Advisory Council in late November 2025, has positioned itself at the intersection of crypto innovation and regulatory engagement, and Hassett’s involvement has only deepened the perception that he would bring a pro-crypto tilt to the Fed.
Juan Leon, Senior Investment Strategist at Bitwise, put it bluntly: "If Kevin Hassett becomes Fed Chair, the implications for crypto are strongly bullish. 1. Aggressive 'dove' who has publicly criticized current rates for being too high and advocated for deeper, faster cuts. 2. Led the White House digital asset working group to shape pro-crypto regulation. 3. Served on Coinbase’s advisory board and owns a large stake in COIN."
This bullishness, however, comes with a caveat. Critics warn that Hassett’s personal investments in Coinbase could create significant conflicts of interest, especially as the Fed plays a key role in setting rules for stablecoins, banks’ crypto exposure, and the potential rollout of a digital dollar. As 99Bitcoins observed, "Hassett’s Coinbase ties have sparked conflict-of-interest debates in Washington regarding his potential Fed Chair role." The optics of a central banker with millions invested in a major crypto exchange are, to put it mildly, complicated.
The process of selecting a new Fed Chair is always fraught with politics, but this year’s contest is particularly charged. Trump’s team, according to Bloomberg, believes that naming a successor early will allow for a smooth Senate confirmation process before Powell’s term ends. Yet, as White House Press Secretary Karoline Leavitt reminded reporters, “Trump often makes unexpected decisions, cautioning against assuming any outcome until it becomes official.” The president’s penchant for last-minute changes has kept even his closest aides on edge, with some warning that the choice won’t be final until Trump himself makes the announcement.
Beyond the palace intrigue, the stakes for monetary policy and financial stability are enormous. Hassett’s critics point to the challenge he may face in building consensus among the Federal Open Market Committee, given his close alignment with Trump’s economic agenda. The Fed operates on collective decision-making, and a Chair perceived as too willing to follow White House preferences could strain the institution’s vaunted independence. Neil Dutta of Renaissance Macro Research has suggested that "Hassett could face resistance from other committee members who prioritize the Fed’s traditional independence from political pressure."
Meanwhile, the Senate will have the final say. While Republicans currently control the chamber, some senators have already signaled concern about safeguarding the Fed’s autonomy. The nominee will need to reassure lawmakers that, despite his ties to both the administration and the crypto sector, he can serve as an independent steward of U.S. monetary policy.
For now, all eyes are on the White House and the financial markets as the decision looms. Hassett’s willingness to serve is clear—when asked by Fox News if he would accept the role, he replied, “Of course I’d say yes.” The next few weeks will determine whether he gets the chance to steer the world’s most powerful central bank into a new, and potentially more crypto-friendly, era.
Whatever the outcome, the choice of the next Fed Chair will reverberate far beyond Washington, shaping interest rates, the strength of the dollar, and the future of digital assets for years to come.
