The race to lead the world’s most powerful central bank has taken a dramatic turn, with Kevin Hassett now widely considered President Donald Trump’s likely nominee for chair of the Federal Reserve. This development, reported on December 4, 2025, by sources including Al Jazeera and prediction market Kalshi, has sent ripples through financial markets, ignited fierce debate over the Fed’s independence, and left investors around the globe bracing for significant changes in U.S. monetary policy.
Kevin Hassett is no stranger to the economic spotlight. A prominent American economist, policy adviser, and academic, he’s built a reputation for bold ideas and a willingness to challenge conventional wisdom. His academic credentials include a B.A. in economics from Swarthmore College and a Ph.D. from the University of Pennsylvania. Early in his career, he served as a senior economist at the Federal Reserve Board of Governors and later taught at Columbia Business School. He would go on to become a senior fellow and research director at the American Enterprise Institute, where he focused on fiscal and tax policy, and co-authored the controversial book Dow 36,000 in 1999—a work that, regardless of its critics, cemented his status as a provocative economic thinker.
Hassett’s government service is equally notable. He was appointed by President Trump as the 29th Chair of the Council of Economic Advisers (CEA) from 2017 to 2019, advising on fiscal policy, taxation, and trade. In 2025, he returned to the White House as Director of the National Economic Council (NEC) during Trump’s second administration, helping shape the administration’s economic strategy. Now, with the odds of his nomination for Fed chair at 86 percent according to Kalshi (as reported by Al Jazeera), the financial world is preparing for what could be a profound shift in central banking.
The prospect of Hassett at the helm of the Federal Reserve is not just a matter of credentials. It’s also about the institution’s future direction and its cherished independence. According to Al Jazeera, some experts are sounding alarms. Anastassia Fedyk, an assistant professor of finance at UC Berkeley’s Haas School of Business, told the outlet, “I think that concerns regarding the Fed’s independence are very real and valid. It’s not just about Kevin Hassett being closer to President Trump than prior Fed chairs were to their nominating presidents. There is also the contextual background: the firing of Lisa Cook, the attempts to end Jerome Powell’s term early, and Kevin Hassett’s own stated approval for those attempts.”
It’s that context—a string of controversial moves by the administration, including the firing of Fed Governor Lisa Cook and reported efforts to end Jerome Powell’s term ahead of schedule—that has investors and analysts on edge. As Meyka notes, the Fed’s autonomy in decision-making is pivotal for economic stability. Any perception that its independence is compromised could shake market confidence and alter the course of monetary policy for years to come.
Markets have already responded to the shifting winds. When news broke that Hassett was the frontrunner, yields on the ten-year U.S. Treasury bond rose roughly ten basis points, according to Bloomberg reporting cited by Invezz. This wasn’t a reaction to Hassett’s economic expertise—most agree he’s qualified—but rather to the idea that the Fed could become more of an economic arm of the White House. Investors are recalibrating risk, with the bond market signaling that long-term borrowing costs might rise if the Fed’s independence comes into question. As Invezz puts it, “If the White House pushes harder on the Fed and the central bank bends, long-term borrowing becomes more expensive.”
The implications go beyond the bond market. Hassett’s public stance on monetary policy is clear: he favors faster rate cuts than the current chair, Jerome Powell. This dovish tilt has crypto markets buzzing. According to Invezz, Hassett is a member of Coinbase’s Asset Management Academic and Regulatory Advisory Council and holds over a million dollars in company stock—making him, as the outlet notes, “the most crypto-entangled Fed chair candidate in history.” Crypto traders are betting that a Hassett-led Fed would usher in a liquidity-driven boom, with faster rate cuts in 2026 fueling speculation and potentially driving digital asset prices higher. Supporters see his crypto connections as a plus, arguing that a chair who understands digital assets could encourage banks to expand services and integrate stablecoins. Critics, however, worry about conflicts of interest and the risk of the Fed appearing to favor one industry.
The global ramifications are just as significant. The U.S. dollar’s dominance has long rested on the size of the American economy and the predictability of its institutions. If the Fed is seen as more political, international investors may demand higher compensation for uncertainty, pushing up long-term yields and increasing the cost of borrowing for mortgages, corporations, and the federal government. As Invezz observes, “These moves often start small. They grow over the years.” The tone set by the Fed chair shapes expectations—Powell’s caution anchored markets, but Hassett’s advocacy for faster easing could shift the narrative and the numbers.
For investors and analysts, the debate is not just about personalities. It’s about the direction of global money. The White House has made clear it wants a chair who shares its policy preferences, and the market is already front-running the expected changes. As Meyka reports, “The Fed Chair’s ability to maintain economic stability without political pressure is considered crucial by market analysts.” The uncertainty over how Hassett’s leadership might influence interest rates, inflation management, and the broader economy is fueling both anticipation and anxiety.
Social media platforms like X (formerly Twitter) are abuzz with speculation. Some investors welcome Hassett’s expertise, hoping for a steady hand during a period of economic recovery. Others voice concern that the central bank could lose its hard-won reputation for independence, with long-term consequences for U.S. economic stability and global trust in American financial leadership.
Ultimately, the story of Kevin Hassett’s potential nomination is about more than one man’s career trajectory. It’s about the delicate balance between economic expertise, political influence, and institutional independence. As the world watches, the stakes for the Federal Reserve—and for the broader economy—have rarely been higher. The coming weeks will reveal whether the Fed can maintain its role as a credible, data-driven referee, or whether it will become a new kind of player in the ever-evolving game of global finance.
