Washington’s corridors of power have been buzzing with news: Kevin Hassett, Director of the White House National Economic Council, has emerged as the frontrunner for President Trump’s pick as the next Chair of the Federal Reserve.
Several sources familiar with the matter reveal that President Trump regards Hassett as a "trusted, reliable ally who understands and can implement the president’s economic vision." If confirmed, this appointment would mark a fundamental shift away from the Federal Reserve’s modern tradition of political neutrality.
01 Leadership Shakeup: Why Hassett Is the Top Contender
During President Trump’s second term, the criteria for key appointments have shifted dramatically. While academic credentials and Wall Street experience remain important, the primary qualification is now "alignment with the president’s agenda."
Hassett has outpaced other strong candidates, including Waller and Walsh, not only because he is a staunch believer in Trump’s economic philosophy, but also because he is the architect behind the administration’s aggressive interest rate policies.
Treasury Secretary Scott Besant has nearly completed the interview process. Reports indicate that the candidate list has narrowed from about ten to five, with Hassett leading the pack.
Trump has repeatedly criticized current Chair Jerome Powell for "cutting rates too slowly and being uncooperative," even hinting that he considered firing him. In contrast to Powell’s cautious approach, Hassett’s aggressive stance is seen as the "driving force" that could bring Trump’s bold rate-cutting strategy to the Fed.
02 Policy Shift: From Data-Driven to Growth-First
Hassett’s policy leanings are no secret. Earlier this month, he told Fox News that if he were running the Fed, "I’d cut rates now," arguing that "the data shows we should do it."
This view is perfectly in line with Trump’s longstanding calls for lower interest rates. Trump recently joked—half-seriously—that if Treasury Secretary Besant fails to help drive rate cuts, "he’ll be fired too."
Markets expect that if Hassett becomes Fed Chair, he will prioritize economic growth over strict inflation control. He may push for more aggressive easing, including a possible 50 basis point rate cut in December 2025.
Such a shift would move the Fed’s policy framework from the current "data dependence" to a "growth-first" approach, with far-reaching implications for global capital flows.
03 Market Reaction: Treasuries Rally and Rate Cut Expectations Surge
News of Hassett’s potential nomination has already moved the markets. US Treasury prices have risen, with the 10-year yield dropping below 4%, reflecting expectations that "Hassett’s appointment = faster, deeper rate cuts."
According to CME’s FedWatch tool, the probability of a December rate cut has surged to 82.7%. This data, coupled with the news of Hassett’s nomination, has fueled a unified market outlook.
For traders, Hassett represents certainty—specifically, liquidity certainty. Under Powell, "data dependence" often led to delayed and wavering policy. Under Hassett, the defining label would be "growth-first."
The "Fed put" may evolve into a "Trump put," with the Federal Reserve potentially becoming the stock market’s most steadfast ally.
04 Impact on Crypto: Gate Market Data Shows Early Signs
The Fed’s potential policy shift is already making waves in the crypto market. On Gate, market data from November 26, 2025, shows significant gains across several tokens.
Monad (MON) surged by 44.78%, currently trading at $0.46; Story (IP) rose 22.72% to $2.99; SPX6900 (SPX) climbed 13.36% to $0.64.
Analysts note that these gains are concentrated in emerging public chains and infrastructure projects, reflecting the market’s focus on technological innovation. The Fed’s possible pivot could create a more favorable liquidity environment for high-risk assets.
If Hassett implements a more accommodative monetary policy, the crypto market could see increased capital inflows. Historically, during periods of declining US interest rates, capital seeking higher returns often flows into emerging assets.
05 Long-Term Impact: A Historic Test of Fed Independence
If Hassett takes the helm at the Fed, it will not only be a career peak for him, but also a high-stakes gamble for America’s modern central banking system.
Here, "weakness" does not refer to a lack of ability, but to a loss of independence. If the Fed Chair’s decisions merely mirror the intentions of the Oval Office, the Fed’s credibility as the anchor of global finance could be severely undermined.
The stark contrast with Powell is clear: Powell earned market respect by standing firm on tightening policy to combat inflation, even in the face of intense pressure from the White House. He proved the Fed is not the president’s private bank.
If Hassett simply accommodates Trump’s demands, and inflation returns, markets may lose faith in the Fed’s willingness to tighten monetary policy.
Such a "credibility crisis" could trigger a disastrous divergence: the Fed desperately pushes down short-term rates, while markets drive long-term rates higher.
Outlook
Outside the White House, reporters are still awaiting an official announcement. Treasury Secretary Besant has wrapped up all interviews this week, and Trump is expected to name his choice before Christmas. Whatever the outcome, global financial markets now stand at a historic crossroads.
For Gate users, this potential leadership change could usher in a more accommodative environment for crypto. If the Fed’s likely new Chair believes rates are "too high," investors may find little reason to hold cash.
