Kevin Hassett, a name long familiar in conservative economic circles and among Washington policy wonks, is suddenly at the forefront of global finance. As President Donald Trump edges closer to revealing his pick for the next chair of the U.S. Federal Reserve, Hassett—currently director of the White House National Economic Council (NEC)—has emerged as the clear frontrunner. With Jerome Powell’s turbulent eight-year term set to end in May 2026, the financial world is watching closely, and not without a fair bit of anxiety.
On December 2, 2025, President Trump described Hassett as a “potential Fed chair,” telling reporters that the shortlist was down to a single candidate, according to The New York Times. That same week, prediction markets like Kalshi put Hassett’s odds at 74%, while Polymarket and major outlets such as Bloomberg echoed the consensus: barring an unforeseen twist, Hassett is on track to take the helm of the world’s most influential central bank. Treasury Secretary Scott Bessent has already completed the interview process and is expected to deliver his formal recommendation soon. Trump himself has said the announcement will come in early 2026.
Hassett’s rise is no accident. Born in Greenfield, Massachusetts in 1962, he boasts an impeccable academic pedigree—Swarthmore College for his undergraduate studies, followed by a master’s and PhD in economics from the University of Pennsylvania. He taught at Columbia Business School and served as a senior economist at the Federal Reserve Board of Governors, specializing in macroeconomics and fiscal policy. Hassett then spent two decades at the conservative American Enterprise Institute (AEI), where he led economic policy research and became a key voice on tax reform and capital markets.
His public profile soared in 1999 with the publication of “Dow 36,000,” a book co-authored with James K. Glassman. The book argued that the U.S. stock market was severely undervalued at the height of the dot-com bubble—a prediction that didn’t pan out, but nonetheless made Hassett a household name in conservative economic circles. Over the years, he advised numerous Republican presidential campaigns, including those of John McCain, George W. Bush, and Mitt Romney.
Hassett’s connection to Trump began in earnest in 2017, when he was appointed chairman of the Council of Economic Advisers (CEA). He became one of Trump’s most loyal and visible defenders, touting tax cuts and industrial policies as engines for corporate investment and wage growth. After stepping down from the CEA in 2019, he returned to the White House during the 2020 pandemic, where he played a central role in assessing economic impacts and shaping reopening strategies—though his models sometimes clashed with public health experts.
Following Trump’s 2024 election victory, Hassett was tapped to lead the NEC, officially taking the post on January 20, 2025. In this role, he has become the administration’s primary economic “hub,” coordinating between the White House, Treasury, and the Fed itself. Early in Trump’s second term, the search for Powell’s successor began in earnest, with Bessent spearheading the process. By late 2025, Hassett had emerged as Trump’s favorite, outpacing rivals like Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder.
Why Hassett? For Trump, the calculus is simple: loyalty and market acceptance. As The New York Times reported, “He possesses a unique ability to simultaneously translate in both directions—Trumpian gobbledygook into strong, coherent economics.” Mark Spindel, chief investment officer at Potomac River Capital, put it more bluntly: “He can take strong, coherent economics and translate it into Trumpian gobbledygook.”
But there’s more to Hassett’s candidacy than just political alignment. He is a staunch advocate of lower interest rates and has called for “faster and bigger cuts” to rates—a position Trump has publicly demanded for months. If confirmed, Hassett would be one of the most politically aligned Fed chairs in modern history, breaking from the institution’s tradition of independence. That has some market participants on edge. As DL News notes, “A more dovish Fed led by Hassett would inject more money into the financial system and push risk asset valuations higher by disincentivizing investors from holding bonds.” But critics warn this could threaten price stability and stoke inflation.
Hassett’s relationship with the cryptocurrency industry adds another layer of intrigue. Since 2021, he has served as an advisor to One River Digital Asset Management, and following Coinbase’s acquisition of part of One River’s business in 2023, he became an advisor to Coinbase as well. In June 2025, financial disclosures revealed Hassett’s personal holdings in Coinbase Global (COIN) stock, valued between $1 million and $5 million. Trump’s Executive Order 14178, issued early in 2025, rescinded Biden-era digital asset policies, prohibited the launch of a central bank digital currency (CBDC), and created a Digital Asset Markets Task Force administratively subordinate to the NEC—meaning Hassett is now at the center of U.S. crypto policy.
Hassett is widely described as “crypto-friendly,” favoring a compliance-focused approach and viewing digital assets as a pillar of American financial innovation and geopolitical competition. The first report from the White House’s Digital Asset Markets Task Force, released this summer, recommended comprehensive reforms—from stablecoin regulation to clearer tax and anti-money laundering rules. Hassett, as the task force’s coordinator, is seen as the architect of these proposals.
Yet, Hassett’s close ties to Trump and his dovish stance on rates have sparked controversy over the future of Fed independence. Some analysts worry he could become a mere extension of Trump’s will, especially given his shift from mainstream conservative positions to supporting tariffs and tougher immigration policies after working with Trump. Bond investors and Wall Street institutions have voiced concerns to the Treasury that Hassett might “more aggressively push for interest rate cuts,” even if inflation remains above the Fed’s 2% target.
Hassett, for his part, has publicly insisted on the importance of central bank independence. In a September 2025 CBS interview, when asked whether he would follow Trump’s wishes or maintain full independence, Hassett replied, “I would 100% choose monetary policy to be completely independent of political influence, including influence from President Trump.” He warned that countries where political leaders control central banks often suffer runaway inflation. Still, he also endorsed Treasury Secretary Bessent’s call for a comprehensive review of the Fed’s mandate and research paradigm, saying he would be “prepared to implement this vision” if appointed. This dual message leaves room for interpretation—and for concern.
Ultimately, the market is already treating Hassett as the “shadow Fed Chair.” Every public remark he makes is scrutinized for clues about the Fed’s future direction. If confirmed, his tenure will test the boundaries between political loyalty and institutional independence, with ripple effects for interest rates, digital assets, and the broader economy. As the world awaits Trump’s official announcement in early 2026, one thing is clear: Kevin Hassett’s every move will shape the next era of American monetary policy.
