- White House advisor Kevin Hassett is reportedly President Donald Trump’s top pick for Fed chair, and the crypto community is bullish over the news.
Insider information coming from the Oval Office claims that US President Donald Trump already has someone in mind to replace Federal Reserve Chairman Jerome Powell. According to sources familiar with the matter, his top pick is White House National Economic Council Director Kevin Hassett.
End of Powell’s Tenure
Powell has been at the top of the Fed’s chain of command for over seven years. He assumed office as chairman of the US central bank in 2018 and secured another term in 2022.
Given Trump’s criticisms of his monetary policies, particularly on the alleged poor execution of interest rate cuts, this may be Powell’s last term as chairman. Unless renewed, his role as chair ends in May 2026. However, his position on the Board of Governors doesn’t expire until January 2028.
Hassett Groomed as Next Fed Chair
Hassett, a former assistant professor of economics at the Columbia Business School, is reportedly Trump’s nominee for Fed chairmanship next year. For a good reason, many members of the crypto community are rallying behind him.
Many consider the White House advisor a progressive bet for the institution. Besides serving at the Fed Board’s Division of Research and Statistics in past administrations, he played a crucial part in the present administration’s digital asset working group. Their team crafted the regime’s first crypto policy report, which came out in July, and other crypto initiatives.
However, Hassett came under scrutiny upon disclosing his substantial investment in Coinbase in June. During that time, he revealed a $1 million stake at the crypto exchange platform. Additionally, he admitted playing a key role on the company’s Academic and Regulatory Advisory Council, for which he received approximately $50,000 in compensation.
Potential Conflict of Interest
Hassett’s current role has drawn criticism for a potential conflict of interest in his crypto-related affairs. On the other hand, many are downplaying the same factor if he ever takes over as Fed chair. After all, they argued that the US central bank doesn’t directly engage with cryptocurrencies or related businesses, as it doesn’t oversee securities or commodities.
Nonetheless, others warn that monetary policies affect crypto, albeit indirectly. Typically, interest rate cuts always favor crypto assets. Lower returns on the US dollar and on traditional fixed-income investments often make crypto investments more enticing, given their high-risk, high-return profile.
Furthermore, since the Fed regulates banks, payment systems, and holding companies, a crypto-friendly chair could leverage the central bank’s supervisory power to facilitate looser rules that reduce friction and barriers to financial institutions’ interaction with digital assets.
