Kevin Hassett: Crypto-Friendly Economic Adviser to be the next Federal Reserve Chair?
Crucial developments emerge from the White House that may define the future of the Federal Reserve, one of the country’s most influential financial institutions. Kevin Hassett, a crypto-friendly economist currently serving as the director of the National Economic Council, is believed to be among the top contenders to occupy the role of the Federal Reserve Chair when Jerome Powell retires in May.
President Donald Trump’s advisers and supporters allegedly favor Hassett due to his shared interest with the president in reducing fiscal interest rates. This key fiscal policy reform could stimulate the markets significantly, given that the Federal Reserve has cut rates twice this year, lowering it by 50 basis points total.
Hassett’s Fed Chair Candidacy and Trump’s Influence
An influential decision-maker, Hassett supervises the White House’s digital asset working group created by President Trump at the beginning of this year. The group has released a report shedding light on policy considerations around cryptocurrency—a sign that suggests that a Hassett-led Fed could be more open to crypto.
While Hassett is not the only crypto-friendly candidate for the Fed role, his expressed interest in reducing the central bank’s rates could give him a competitive edge over other candidates.
Hassett, when asked about his ambitions to serve as the Fed Chair in an interview with Fox News, gladly acknowledged the opportunity to serve both his country and his president. He stated that he and Trump discuss the possibility frequently.
Hassett’s Financial Disclosure: A Glimpse into His Crypto Involvement
Hassett’s involvement with cryptocurrencies goes beyond his professional role. In a disclosure made in June, he revealed that he owned Coinbase (COIN) stocks worth at least $1 million. Coinbase, a renowned cryptocurrency exchange, regularly paid Hassett a $50,001 salary for his contributions to its Academic and Regulatory Advisory Council. The council, established in 2023, includes prominent figures like Jay Clayton, Manhattan’s US Attorney.
Hassett’s Professional Background: Leveraging Deep Knowledge and Understanding of Cryptocurrency
Hassett’s expertise extends beyond his current role at the White House. He has worked with One River Digital Asset Management as a member of their advisory board, providing counsel based on his extensive knowledge of digital currencies. His professional background also includes being the chair of the White House Council of Economic Advisers from 2017 to 2019, during Trump’s first term.
Competition for the Role: Other Contenders
However, Hasset is not alone in the race to lead the Fed. Other potential contenders include Fed Governor Chris Waller, who has shown support for decentralized financing in the past. There’s also Michelle Bowman, the vice supervision chair of the Federal Reserve, who advocates for a pragmatic approach, suggesting that the Fed staff be allowed to invest modestly in cryptocurrencies to understand their functionality better.
The Fed’s Future under Trump’s Administration
Irrespective of who assumes the position, the primary task will be to follow through with President Trump’s agenda. He has been adamant about cutting interest rates to stimulate the markets. The financial marketplace is already anticipating a rate cut this Christmas. The CME’s FedWatch indicates a roughly 85% chance of a 25-basis-point reduction.
This decision and its subsequent impact on the market reflect the significance of the Federal Reserve Chair position. The world will watch closely as this power transition unfolds, considering the considerable effect the person in this seat will exert on the future of the country’s economy.
