Encryption-friendly PI, current White House economic advisor Kevin Hassett may succeed Powell as the Chairman of The Federal Reserve (FED).

The internal personnel layout of the White House is quietly influencing the future direction of the United States' monetary policy. Current White House economic advisor and Director of the National Economic Council (NEC) Kevin Hassett has become the most popular candidate to succeed the current Federal Reserve Chairman Jerome Powell in the Trump administration. Trump is expected to officially announce the nomination before Christmas, and Hassett is being followed not only because of his deep ties to the Trump camp but also because he is seen as a crypto-friendly faction, which has led to high market expectations.

Who is Kevin Hassett?

Hasett's career in the field of economic policy spans three decades, from teaching at Columbia Business School in the 1990s, to serving as a policy advisor at the Treasury Department, and then becoming an economist in the research and statistics division of The Federal Reserve (FED), with experience across academia, government, and regulatory bodies. During the administrations of Bush Sr. and Clinton, he participated in fiscal policy formulation; in Trump's first term, he joined the White House Council of Economic Advisers; and in Trump's second term, he served as the NEC director, becoming one of Trump's core economic team members. Earlier this year, he also led the establishment of the White House's digital asset working group to formulate an encryption policy framework for this administration.

Hasette is a friend of Crypto Assets.

Although Hassett has not strongly expressed his position on Crypto Assets publicly, observers generally consider him a friendly ally in the industry. In June of this year, he disclosed holding at least $1 million in Coinbase stock and received over $50,000 in compensation for joining the company's advisory board, keeping him closely connected between regulation and industry. Analysts from investment platforms and research institutions point out that if Hassett were to become the chairman of The Federal Reserve (FED), he would likely continue his dovish stance, supporting faster and larger rate cuts. His preference for lowering interest rates is seen as a positive for the Crypto Assets market, as a low-interest environment usually boosts the prices of risk assets.

The Federal Reserve (FED) policy indirectly affects the Crypto Assets ecosystem.

The crypto assets industry, while not directly regulated by the Federal Reserve, is still profoundly influenced by the Fed's regulations on the banking system and payment channels, which can significantly affect the ecosystem of crypto-related businesses. For instance, the banking supervisory requirements for crypto custody services, collateral lending, payment clearing, and stablecoin issuers may change due to the tightening or loosening of Federal Reserve policies. If monetary policy and financial regulation are led by a chairperson who is friendly to crypto, the market generally believes that this will create a more relaxed and open environment.

However, this possible nomination is not simply a market positive, but involves deeper institutional issues. The Trump administration has long sought to strengthen its control over the Federal Reserve (FED), which has sparked intense controversy in American political and economic circles. Earlier, Trump attempted to dismiss Federal Reserve Board member Lisa Cook, but was rejected by the individual and the matter escalated to the Supreme Court, which ultimately allowed Cook to remain in her position. Cook's legal team criticized this move as a fierce attack on the century-old independence of the Federal Reserve (FED).

For many years, the independence of the Federal Reserve has been widely regarded as the cornerstone of economic stability within the U.S. political system. The Council on Foreign Relations further pointed out that a central bank independent from the White House can prevent the government from pressuring for interest rate cuts for short-term electoral gains, thereby avoiding long-term economic distortions. However, market analysts such as Bloomberg senior editor John Authers noted that Trump’s push for Hassett to take office “seems to be based on loyalty rather than professional judgment.” Policy advisor George Pollack also stated that what Trump values is Hassett's alignment with the government on key policies.

The current shortlist includes former Federal Reserve Board member Kevin Warsh, current board member Christopher Waller, Michelle Bowman, and BlackRock executive Rick Rieder, among others. However, outside observers generally believe that Hassett has the highest chance of being selected. Although Hassett's appointment could bring short-term benefits to the crypto market, experts also warn that if the Federal Reserve becomes a subsidiary of government policy, interest rates that are below necessary levels could suppress inflation control, causing long-term harm to the overall economy.

Finally, the Trump administration is about to reveal the nomination results before Christmas, and this decision will not only affect the Crypto Assets market but also have far-reaching implications for the independence of the U.S. central bank, global financial stability, and the future direction of monetary policy. Whether Hassett will become the next chair of The Federal Reserve (FED) is eagerly awaited by the American political and economic circles.

This article discusses the pro-Crypto Assets PI Kevin Hassett, the current White House economic advisor, possibly succeeding Powell as the Chairman of The Federal Reserve (FED). It first appeared in Chain News ABMedia.