Trump Ally Kevin Hassett Tipped To Lead The Fed

In an economic landscape weakened by persistent inflation and markets still under pressure, the succession at the head of the Federal Reserve becomes a highly strategic issue. The rise of Kevin Hassett, former economic adviser to Donald Trump and close to the crypto world, reshuffles the deck. At the intersection of classical monetary policy and financial innovations, his candidacy intrigues, divides, and could mark a major turning point in the relationship between Washington and the crypto industry.

A Serious Contender for the Fed with an Open Crypto Background

While the institution must make a decisive choice in December , the name of Kevin Hassett has insistently resurfaced in recent days in the race for the presidency of the United States Federal Reserve.

Former director of the National Economic Council, Hassett is reported by agency sources to have a central role in the White House task force on cryptos. This group published a report during the summer containing a series of recommendations on regulating the crypto sector, notably regarding stablecoins, taxation, anti-money laundering risks, and the integration of cryptos into the traditional banking system.

This direct link with regulatory work on these assets clearly distinguishes Kevin Hassett from other candidates. Added to this is a notable personal involvement in the crypto ecosystem. In June 2024, he declared holding a stake in Coinbase Global Inc., valued at at least $1 million. This dual exposure, technical and financial, underlines Hassett’s alignment with certain market dynamics.

Here are the main points that emerge from his involvement in the sector :

• He participated in drafting the crypto task force’s report ;

• This report covered key topics such as stablecoins, taxation, financial crime, crypto-related banking infrastructure, and the creation of a strategic reserve ;

• His asset declaration mentions a significant position in Coinbase (COIN), making him one of the few public officials to personally invest in a listed crypto company ;

• His profile contrasts with traditional Fed candidates generally distant from the crypto sector.

An Ally of Trump in a Highly Strategic Race

The potential nomination of Kevin Hassett is not solely based on his economic expertise. He is also seen as a close ally of President Donald Trump, someone the president trusts and has faith in.

This political factor could weigh heavily in the balance as Trump has not yet announced his final decision. Asked about the subject, White House spokeswoman Karoline Leavitt tempered speculation. She stated : “No one really knows what President Trump will do before he does it. Stay tuned!”.

Meanwhile, other names are circulating, such as Fed Governor Christopher Waller, former official Kevin Warsh, Vice Chair Michelle Bowman, and Rick Rieder, Chief Investment Officer at BlackRock.

Yet, Hassett seems to be imposing himself in a context where Donald Trump openly criticizes the current Fed policy. He has expressed his dissatisfaction several times with Jerome Powell. The American president has advocated for a cut in interest rates, a stance opposing the current tightening monetary strategy aimed at curbing inflation.

In an already tense climate, Powell accused Trump of wanting to politicize the Fed, amplifying divisions around its succession. If Hassett is appointed, this dynamic could accelerate a strategic repositioning of the institution, with direct repercussions on financial markets and the crypto ecosystem.