Trump's Crypto-Backed Pick Emerges as Fed Favorite, Sparking Policy Debate

Prediction markets are increasingly betting on Kevin Hassett, a prominent crypto ally and Trump administration adviser, as the leading candidate to succeed Jerome Powell as Federal Reserve Chair. As Powell's term nears its end in May 2026, Hassett's strong alignment with Trump's economic priorities—particularly his advocacy for rate cuts—has positioned him at the forefront of speculation. The Polymarket platform reflects this sentiment, assigning Hassett a 57% chance of securing the role, significantly ahead of other contenders like Fed Governor Christopher Waller (22%) and former Governor Kevin Warsh (15%) .

Hassett's candidacy is bolstered by his deep ties to the cryptocurrency sector, which aligns with Trump's broader pro-market agenda. As director of the National Economic Council, he oversees the White House's digital asset working group and has publicly endorsed crypto-friendly policies. His personal financial disclosures further underscore these connections: he owns at least $1 million in Coinbase stock and previously served on the exchange's Academic and Regulatory Advisory Council, earning $50,001 in 2023. Additionally, Hassett has advised One River Digital Asset Management, a crypto-focused fund manager, and has consistently advocated for regulatory frameworks that support innovation in digital assets.

The potential appointment of Hassett, a self-described "dovish" economist, has sparked speculation about its implications for monetary policy. Trump's emphasis on lowering interest rates to stimulate economic growth could gain momentum under a Hassett-led Fed, particularly as the central bank has already cut rates twice this year by 50 basis points. Market participants are pricing in a 85% probability of further cuts at the December meeting, according to CME's FedWatch tool. Hassett has publicly affirmed his willingness to serve, stating, "Of course I'd have to say yes, because I want to serve my country and I want to serve my president".

While Hassett remains the frontrunner, Trump is also reportedly evaluating other candidates, including Fed Governor Chris Waller and Vice Chair Michelle Bowman, both of whom have expressed openness to crypto-related policies. Treasury Secretary Scott Bessent is expected to finalize the vetting process by early 2026, though delays are possible. The outcome will likely shape the Fed's approach to rate cuts and financial regulation in the coming years, with markets closely watching for signals of Trump's influence on monetary policy.