Rumors around Kevin Hassett intensified today after Donald Trump again hinted that he has “already decided” who will replace Jerome Powell in 2026.
Hassett remains the strongest contender, according to recent reports and repeated references from the President.
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How is Kevin Hassett’s Fed Policy Different from Powell’s?
Hassett currently leads the National Economic Council and has become a central voice in Trump’s economic team. He is widely viewed as far more dovish than Powell. Investors see his appointment as a potential trigger for faster policy easing.
Powell’s term ends in May 2026. He has signaled plans to serve until the end of his mandate.
However, growing political pressure and ongoing speculation have raised questions about how the transition will unfold.
Hassett has made clear that he favors lower rates based on current economic conditions. He has said he would cut rates now if he led the Fed. That stance contrasts with Powell’s slower and more cautious approach.
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Powell has focused on inflation risks and long-term price stability. He has preferred measured steps, even as labor data and growth indicators cooled. This steady approach has kept markets anchored but limited the pace of easing.
Hassett’s background signals a different era. He has spent much of his career pushing pro-growth policies, tax cuts, and looser financial conditions.
His close alignment with the administration has contributed to concerns over central-bank independence.
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However, markets expect immediate consequences if Hassett takes charge. A dovish Fed would likely accelerate cuts in 2026 and weaken the US dollar. It would also lift liquidity across risk assets.
Is Kevin Hassett’s Appointment Good For Crypto Markets?
Crypto markets could feel the shift fastest. Bitcoin and Ethereum tend to rally when real yields fall and global liquidity expands. A weaker dollar also supports inflows into digital assets, especially during policy pivots.
Altcoins may benefit as well. Cheaper credit and higher risk appetite often increase capital rotation into DeFi, L2 ecosystems, and new token launches. Trading volumes usually rise when investors expect easier borrowing conditions.
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If investors question the Fed’s independence, bond markets could react sharply. That instability can spill into crypto, especially during moments of policy uncertainty.
Even with these risks, most traders view a Hassett-led Fed as a net positive for digital assets. A rapid easing cycle would support higher valuations and increase institutional participation through ETFs and tokenized products.
Trump said the official nominee will be announced in early 2026. Until then, markets will continue to price the possibility of a pivot to a more aggressive pro-growth stance.
The crypto market remains sensitive to that outcome, with expectations building ahead of a decisive leadership change at the Federal Reserve.
Source: https://beincrypto.com/kevin-hassett-fed-chair-crypto-impact-outlook/
