Trump Announces Hassett as Next Potential Fed Chair

President Donald Trump has reportedly signaled Kevin Hassett, the former U.S. economic adviser, as a leading candidate to replace Jerome Powell as the next Chair of the Federal Reserve. The development has stirred notable reactions across financial markets, particularly in the cryptocurrency sector, as traders speculate on the implications of a potential shift toward a more dovish monetary stance under a new Fed leader.

Why Hassett Matters for Crypto and Markets

Hassett is known for his market-friendly approach and advocacy for pro-growth economic policies, including lower interest rates and accommodative monetary measures. These stances align closely with Trump’s long-held preference for looser monetary conditions to stimulate investment and growth. Analysts suggest that if Hassett were appointed, the Federal Reserve could pursue earlier rate cuts or reduced balance sheet tightening—moves that would likely benefit risk assets, including BTC (BTC) and ETH (ETH).

Crypto investors have already begun pricing in the potential policy shift. Following the reports, BTC and other digital assets experienced mild rallies as markets reassessed future liquidity conditions. A more dovish Federal Reserve typically supports risk-taking by lowering yields on traditional assets, which tends to push institutional capital toward higher-growth alternatives such as crypto and tech equities.

Hassett’s previous comments about digital assets have been cautiously optimistic. While not an outright crypto advocate, he has acknowledged blockchain’s potential to enhance efficiency and transparency in financial systems. Market participants view his pragmatic approach as a potential bridge between traditional finance and emerging digital asset frameworks.

Broader Impacts on Monetary Policy and Risk Appetite

A change in leadership at the Federal Reserve could significantly alter the direction of U.S. monetary policy. Jerome Powell’s tenure has been defined by aggressive rate hikes to curb inflation and a focus on restoring price stability. In contrast, a Hassett-led Fed might prioritize economic growth and market liquidity, potentially easing financial conditions more rapidly than expected.

Such a shift would reverberate across global markets. Lower interest rates could fragileen the U.S. dollar, boost equity valuations, and reignite institutional interest in cryptocurrencies as a hedge against inflation and a bet on liquidity-driven expansion. For institutional investors already exploring crypto exposure, the appointment could lower perceived macroeconomic risks associated with holding digital assets.

However, some economists caution that ahead rate cuts could reignite inflationary pressures, forcing policymakers to balance growth incentives with price stability. In this context, markets may remain volatile until clearer policy signals emerge. Additionally, the confirmation process for any new Fed chair could face political hurdles, potentially delaying policy transitions.

For the crypto industry, a potential Hassett appointment represents more than a personnel change—it signals the growing relevance of digital assets in monetary discussions. If confirmed, his tenure could mark a period of renewed cooperation between regulators, institutions, and innovators aiming to integrate crypto into the broader financial landscape.