Markets react sharply as the U.S. president signals his preferred candidate for the next Federal Reserve chair.
Prediction markets saw a rapid shift this week after U.S. President Donald Trump appeared to signal that economist Kevin Hassett is the leading contender to replace current Federal Reserve Chair Jerome Powell. The remarks, made during a White House event, sent expectations for Hassett’s nomination sharply higher.
During the event, Trump publicly acknowledged Hassett as a “potential Fed chair,” a comment that immediately reverberated through crypto-native and traditional prediction markets. Just hours earlier, Trump noted that the administration had narrowed its search down to a single candidate, adding further weight to the speculation.
Following the statement, odds on blockchain-based platform Kalshi spiked to 85%, up from around 66% earlier in the day. A similar surge occurred on Polymarket, where traders quickly repriced the likelihood of Hassett’s selection.
Hassett currently serves as director of the National Economic Council and is known for his crypto-friendly outlook, including a reported stake of roughly $1 million in Coinbase. He previously oversaw the government’s digital asset working group, placing him on the radar of both traditional finance and crypto industry observers.
What a New Fed Chair Could Mean
While the Federal Reserve does not craft crypto-specific regulations, its decisions on monetary policy and interest rates heavily shape overall market sentiment. Treasury Secretary Scott Bessent, who is leading the search effort, recently emphasized the need for a chair who can guide the institution more quietly and restore a steady, background role for the Fed.
As Powell’s term approaches its May 2026 end, markets appear increasingly convinced that Trump is signaling his preference—setting the stage for one of the most consequential appointments in U.S. financial governance.
Disclaimer
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