Trump Signals Kevin Hassett as Top Pick for Federal Reserve Chair

TLDR

• President Trump introduced Kevin Hassett as a “potential Fed chair” at a White House event on Tuesday, causing prediction market odds to jump to 85% on Kalshi
• Trump said earlier Tuesday that the Fed chair race has been narrowed down to one person from an initial field of 10 candidates
• Hassett serves as director of the National Economic Council and holds a $1 million stake in Coinbase, making him crypto-friendly
• Treasury Secretary Scott Bessent has been leading the search process, with finalists scheduled for interviews with VP JD Vance this week
• Jerome Powell’s term as Fed chair ends in May 2026, and Trump has openly criticized him as “grossly incompetent”

President Donald Trump gave his strongest hint yet about the next Federal Reserve chair during a White House event on Tuesday. Trump introduced Kevin Hassett as a “potential Fed chair” to guests, adding that Hassett is a “respected person.”

The comments sent prediction markets into overdrive. On Kalshi, the odds of Hassett becoming Fed chair jumped to 85% from around 66%. Polymarket showed similar movement in betting odds.

Kevin Hassett currently serves as director of the National Economic Council. Trump selected him for the role in January 2025. He previously worked as chairman of the White House Council of Economic Advisers from 2017 to 2019.

Hassett holds a $1 million stake in Coinbase. He has overseen the government’s digital asset working group. These factors make him appealing to crypto advocates who want Fed leadership more favorable to digital assets.

Treasury Secretary Scott Bessent has been running the search since Labor Day. The initial field of 11 candidates was narrowed to five finalists. The list includes Hassett, former Fed governor Kevin Warsh, current Fed governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder.

The Selection Process

Finalists are scheduled to meet with Vice President JD Vance and White House staff this week. Trump said on Tuesday he would announce his decision early next year. Bessent previously indicated the process would allow Trump to select a nominee before Christmas.

Former front-runner Kevin Warsh appears to have fallen behind in the race. People who spoke with him recently believe he no longer sees himself as the top candidate.

Why This Matters for Crypto

The Fed chair doesn’t directly regulate crypto but influences market conditions through monetary policy. Lower interest rates generally benefit crypto markets. Hassett has criticized the Fed’s current rate policy as too high.

The Fed also oversees banking regulations. Changes to banking rules could affect how crypto firms interact with traditional financial institutions.

Market reaction to rumors about Hassett’s candidacy showed long-term interest rates declining last week. Hassett pointed to this as evidence he could maintain market credibility.

Some former colleagues have questioned whether Hassett has the temperament to stand up to Trump if needed. He spent months publicly criticizing Powell while campaigning for the position. Trump has not made a final announcement about his choice.

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