Crypto-aligned economic adviser gains momentum as policymakers anticipate a major shift in U.S. interest-rate strategy under a new Fed leadership.
Kevin Hassett, director of the National Economic Council and a key figure in the administration’s digital-asset policy group, has surfaced as a top contender to replace Jerome Powell when his term ends in May. According to multiple sources cited in recent briefings, Hassett’s close alignment with the president’s push for rate cuts and his involvement in shaping crypto policy have accelerated his rise as the frontrunner.
Federal Reserve Leadership Shift in Focus
Advisers within the administration reportedly view Hassett as the strongest fit for the upcoming vacancy. He has publicly expressed support for a more accommodative monetary approach, closely matching the president’s stance. One policy analyst observing the Fed selection process noted that “the administration wants a chair who is fully aligned on lowering rates and stimulating markets”, highlighting Hassett’s appeal.
Hassett oversees the White House digital-asset working group, established in January to outline future crypto regulatory priorities. The group released a framework in July emphasizing market clarity, innovation and controlled risk exposure—factors that have strengthened his profile among pro-crypto policymakers.
During a recent interview, Hassett said he would accept the position if asked, stating that he wants to serve his country and support the administration’s economic direction.
Crypto Background Adds Momentum
Hassett’s financial disclosures revealed ownership of at least $1 million in Coinbase stock, along with earnings for advisory work on the exchange’s Academic and Regulatory Advisory Council. His past involvement with One River Digital Asset Management further signals a long-standing interest in digital assets.
Economists say this background could influence future regulatory and innovation efforts at the central bank. A market researcher commented that “a Fed chair with deep exposure to digital assets would represent a significant shift in how innovation is weighed in monetary-policy decisions”.
Other Candidates Reflect Pro-Innovation Direction
The administration has also reviewed other potential nominees, including Fed Governor Chris Waller, who publicly encouraged banks to explore decentralized finance, and Vice Chair for Supervision Michelle Bowman, who argued that Fed employees should be allowed small crypto holdings for practical understanding of the technology.
Regardless of who is appointed, the expectation is that the next chair will face direct pressure to continue easing rates. The Fed has already cut rates twice this year, totaling 50 basis points.
Market sentiment remains strongly tilted toward a December reduction, with CME’s FedWatch tool placing the probability of a 25-basis-point cut at around 85%—a sign that investors expect the shift in leadership to reinforce a more dovish direction.
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