Kevin Hassett Emerges as Leading Candidate for Federal Reserve Chair
The conversation around who will lead the Federal Reserve after Jerome Powell has taken an unexpected turn, with White House economic adviser Kevin Hassett emerging as a serious contender.
- Hassett is now viewed as the top contender to replace Jerome Powell as Fed chair.
- His crypto policy background is playing a major role in his rise.
- The decision comes as markets expect further rate cuts.
People familiar with internal discussions say Hassett has recently moved toward the top of the shortlist and is now being treated as the likeliest replacement when Powell’s term as chair ends in May.
Hassett’s Crypto Background Becomes a Political Advantage
Unlike previous transitions at the central bank, this one is being shaped as much by digital asset policy as by interest-rate philosophy. Hassett has become one of the most visible figures in the administration’s crypto strategy due to his leadership of the National Economic Council, which also oversees the White House’s digital asset working group. That group produced a major policy report earlier this year, giving Hassett a central role in shaping the administration’s regulatory approach to the sector.
Hassett’s connection to crypto is not just through policymaking. His public disclosures show that he owns a substantial amount of Coinbase stock and has been compensated by the exchange for serving on its Academic and Regulatory Advisory Council. Before taking that position, he advised the digital asset fund manager One River and previously chaired the Council of Economic Advisers during Trump’s first term.
Supporters of the president view Hassett as someone who aligns closely with Trump’s preference for lower interest rates. The current expectation in Washington is that the next Fed chair will be chosen partly on the basis of who is willing to push rates down more aggressively. Hassett acknowledged in a Fox News interview this week that he would accept the role if asked, describing it as an obligation to both the country and the administration.
Fed Leadership Decision Collides With Expectations for Further Rate Cuts
While Hassett has become the most discussed candidate, he is not the only one on the radar. Chris Waller and Michelle Bowman remain in consideration, and both have signaled openness to digital assets in various public comments this year. Waller has urged banks to study opportunities in decentralized finance, while Bowman has argued that Federal Reserve staff should be allowed to personally hold small amounts of cryptocurrency to better understand how the technology works.
Even if Powell is replaced as chair later this year, he will not be leaving the Federal Reserve. His term on the board continues through January 2028, meaning the new chair — whoever it is — would be working alongside him for several years.
The potential nomination comes at a sensitive moment in monetary policy. The Fed has already reduced rates by a cumulative 50 basis points this year and markets have assigned a high probability to another cut in December. If Hassett takes the helm, he would assume leadership of a central bank already shifting toward an easing stance — and for the first time, the Fed could be led by someone with deep personal and professional links to the cryptocurrency sector.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
