Crypto-Friendly Kevin Hassett Emerges as Top Candidate for Federal Reserve Chair

Kevin Hassett Leading the Race for Federal Reserve Chair

Crypto-friendly White House economic advisor Kevin Hassett has reportedly emerged as a top candidate for the next Federal Reserve chair, potentially replacing Jerome Powell when his tenure concludes in May. President Donald Trump’s advisors and backers consider Hassett the frontrunner to assume the Fed chair position, citing his alignment with Trump’s desire to lower interest rates, as reported by Bloomberg on Tuesday, referencing sources familiar with the situation.

Hassett currently serves as the director of the National Economic Council, overseeing the White House’s digital asset working group initiated by Trump in January. This group released a report in July, outlining policy considerations for the crypto sector.

Hassett's Crypto Support and Interest Rate Views

Hassett stands out among several reported crypto-friendly Fed chair candidates who have supported Trump’s call for the central bank to reduce interest rates to stimulate the markets. While Powell's term as chair ends in May, his tenure on the Fed Board extends until January 2028.

In response to a question from Fox News on Tuesday about whether he would accept a job as Fed chair, Hassett stated, “Of course I’d have to say yes, because I want to serve my country and I want to serve my president.” He further added, “President Trump and I have talked a lot about it.”

Hassett's Coinbase Holdings and Crypto Advisory Role

In June, it was reported that Hassett disclosed owning at least $1 million worth of Coinbase (COIN) stock. He also revealed receiving a $50,001 salary from Coinbase for his role on the crypto exchange’s Academic and Regulatory Advisory Council, established by the company in 2023 and including Manhattan US Attorney Jay Clayton.

Hassett previously served on the advisory board for the crypto fund manager One River Digital Asset Management and held the position of chair of the White House Council of Economic Advisers from 2017 to 2019 during Trump’s first term.

Trump's Crypto-Inclined Fed Chair Shortlist

Trump has reportedly also vetted Fed Governor Chris Waller, who advocated for decentralized finance to bankers in August. Michelle Bowman, the Fed’s vice chair for supervision, is another potential contender. Bowman has suggested allowing Fed staff to invest a small amount in crypto to gain a “working understanding of the underlying functionality.”

Regardless of Trump’s ultimate choice, the nominee will face pressure to cut interest rates. The Fed has already implemented two rate cuts this year, totaling 50 basis points. The market is increasingly optimistic about a rate cut in December when the Fed convenes, with CME’s FedWatch tool indicating an approximately 85% probability of a 25-basis-point cut.