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Trump’s cryptocurrency-supported nominee has become the leading choice for the Fed, igniting discussions over policy direction

Trump’s cryptocurrency-supported nominee has become the leading choice for the Fed, igniting discussions over policy direction

Bitget-RWA2025/12/01 11:22
By:Bitget-RWA

- Prediction markets favor Kevin Hassett, Trump's crypto-aligned adviser, as top candidate to replace Jerome Powell as Fed Chair by May 2026. - Polymarket gives Hassett 57% odds, leveraging his dovish stance on rate cuts and deep ties to cryptocurrency sectors through Coinbase and One River Digital. - His $1M Coinbase stock holdings and advocacy for crypto-friendly regulation align with Trump's pro-market agenda, potentially accelerating rate cuts and digital asset policies. - Markets price 85% chance of f

Kevin Hassett Emerges as Top Contender for Federal Reserve Chair

Kevin Hassett, a well-known supporter of cryptocurrency and former adviser in the Trump administration, is now seen as the leading candidate to replace Jerome Powell as Chair of the Federal Reserve. With Powell’s term set to expire in May 2026, Hassett’s close alignment with Donald Trump’s economic strategies—especially his push for interest rate reductions—has made him the favorite among prediction markets. On Polymarket, Hassett currently holds a 57% probability of being appointed, far outpacing other potential nominees such as Federal Reserve Governor Christopher Waller (22%) and former Governor Kevin Warsh (15%).

Hassett’s prospects are strengthened by his significant involvement in the crypto industry, which fits well with Trump’s pro-market stance. As the head of the National Economic Council, he leads the White House’s digital asset working group and has been a vocal proponent of policies favorable to cryptocurrencies. His financial records reveal that he owns at least $1 million in Coinbase stock and has previously served on Coinbase’s Academic and Regulatory Advisory Council, earning $50,001 in 2023. In addition, Hassett has provided guidance to One River Digital Asset Management, a firm specializing in digital assets, and has consistently pushed for regulatory approaches that encourage growth and innovation in the crypto sector.

The possibility of Hassett, who describes himself as a “dovish” economist, taking the helm at the Fed has fueled debate about future monetary policy. Trump’s focus on lowering interest rates to boost the economy could gain further traction if Hassett is appointed, especially since the central bank has already reduced rates twice this year by a total of 50 basis points. According to CME’s FedWatch tool, markets are currently assigning an 85% chance of additional rate cuts at the December meeting. Hassett has expressed his readiness to accept the position, stating, “Of course I’d have to say yes, because I want to serve my country and I want to serve my president.”

Although Hassett is currently the leading candidate, Trump is also considering other options, including Fed Governor Chris Waller and Vice Chair Michelle Bowman, both of whom have shown support for crypto-friendly policies. Treasury Secretary Scott Bessent is expected to complete the candidate review process by early 2026, though there may be delays. The final decision will likely have a significant impact on the Federal Reserve’s direction regarding interest rates and financial regulation, with investors closely monitoring for signs of Trump’s influence on future monetary policy.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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