Crypto-friendly White House economic adviser 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 advisers and backers view Hassett as the frontrunner to assume the role of Fed chair. This preference stems from his expressed sympathy with Trump’s desire to lower interest rates, as reported by Bloomberg on Tuesday, citing individuals familiar with the matter.
Hassett currently serves as the director of the National Economic Council. In this capacity, he oversees the White House’s digital asset working group, established by Trump in January. This group released a report in July that outlined policy considerations for the cryptocurrency sector.
Hassett is among several reported crypto-friendly candidates for Fed chair who have supported Trump’s objective for the central bank to reduce interest rates to stimulate the markets. Powell’s term as chair is set to end in May, although his position on the Fed Board extends until January 2028.
When questioned by Fox News on Tuesday about whether he would accept a position as Fed chair, Hassett responded, “Of course I’d have to say yes, because I want to serve my country and I want to serve my president.” He further stated, “President Trump and I have talked a lot about it.”
Hassett's Financial Ties and Past Roles in Crypto
In June, Hassett reportedly disclosed that he held at least $1 million worth of stock in Coinbase (COIN).
He also revealed that he received a salary of $50,001 from Coinbase for his participation on the crypto exchange’s Academic and Regulatory Advisory Council. This council, created by Coinbase in 2023, also included individuals such as Manhattan US Attorney Jay Clayton.
Hassett has prior experience serving on the advisory board for the crypto fund manager One River Digital Asset Management. Previously, he held the position of chair of the White House Council of Economic Advisers from 2017 to 2019, during Trump’s first term.
Other Potential Crypto-Friendly Fed Chair Candidates
Trump has reportedly also considered Fed Governor Chris Waller for the role. Waller has previously advocated for decentralized finance to bankers in August.
Another individual on the list of potential successors to the Fed chair is Vice Supervision Chair Michelle Bowman. Bowman has stated that Fed staff should be permitted to invest a small amount in cryptocurrencies to gain a “working understanding of the underlying functionality.”
Regardless of Trump’s choice, he is expected to exert pressure on the appointee to lower interest rates. The Federal Reserve has reduced rates twice this year, totaling 50 basis points.
Market sentiment has become increasingly optimistic regarding a potential rate cut in December, coinciding with the Fed’s meeting. CME’s FedWatch tool indicates approximately an 85% probability of a 25-basis-point cut.