It has not been corroborated by Trump who will be selected as replacement for Federal Reserve Chair Jerome Powell next year, but two recent suggestions, considered concurrently, indicate his advisor who favors digital assets.
Forecasting market probability figures concerning Kevin Hassett’s ascension to the subsequent chair of the US Federal Reserve dramatically increased after it was perceived that US President Donald Trump alluded to the individual he intended for the position during a White House function.
Addressing an audience at the Executive Mansion on Tuesday, attendees were presented by Trump, extending a salutation to Hassett as a “prospective Federal Reserve Chairman.”
“This constitutes an exceptional collective, and I presume a prospective Federal Reserve Chairman is also in attendance,” it was uttered by him. “I am uncertain, are we permitted to articulate that, prospective? He is an esteemed individual, that much can be affirmed. My gratitude is extended to you, Kevin.”
It was solely during a council assembly earlier on that day that it was reported that Trump had already curtailed the selection pool to a singular individual.
“I think we probably looked at 10 and we have it down to one,”
he said.
Markets boost Hassett’s Fed odds after Trump statement
The probability figures on the distributed ledger prediction platform Kalshi for Hassett to be officially put forward as Chairman of the Federal Reserve ascended to 85% following Trump’s public statements, up from approximately 66%. A comparable trend was also observed on Polymarket.
Kevin Hassett is the chief executive of the government’s National Economic Council, having assumed the position in January 2025 after he was designated by Trump.
Regarded as supportive of digital assets, possessing a $1 million interest in Coinbase and having supervised the digital asset task force, Hassett is one of numerous individuals whose candidacies are being assessed for the direction of the Federal Reserve, as Jerome Powell’s tenure is scheduled to conclude in May 2026.
A strained relationship has been maintained with Powell by Trump since assuming the responsibilities of the executive office.
In late November, it was declared by Trump, “I would relish terminating his tenure … grossly unqualified.”
How a New Fed Shift Could Affect Crypto
Treasury Secretary Scott Bessent has been entrusted with managing the selection process for the subsequent Federal Reserve Chairman. Regarding the desired attributes sought by the administration, Bessent articulated last month that a leader who could steer the Federal Reserve more discreetly outside the public view was being sought by the government.
“I think it’s time for the Fed just to move back into the background, like it used to do, calm things down and work for the American people,”
he said.
While crypto regulation is not directly impacted by the Federal Reserve, its deliberations substantially affect market outlook, as monetary policy and interest remuneration are guided by it.
Diminished interest remuneration customarily operates as an advantage for digital assets, and the Federal Reserve’s rate determination has formerly been censured by Hassett for excessive elevation.
Concurrently, banking operations are also supervised by the Federal Reserve, and if specific mandates were to be adjusted (either tightened or relaxed), crypto enterprises’ interactions with the financial sector could be affected.
