Kevin Hassett has emerged as a leading candidate to potentially succeed Jerome Powell as Chair of the U.S. Federal Reserve. Hassett's profile is notable due to his ties to the crypto industry and his close relationship with former President Donald Trump. Trump is expected to announce his pick for the next Fed chair before Christmas, although the decision could be delayed until early 2026. Powell's term ends on May 15, 2026.
Hassett's Background and Experience
Kevin Hassett has a long history in economics and public policy. He earned a Ph.D. in economics from the University of Pennsylvania and has held positions in academia, including as an assistant professor of economics at Columbia Business School and New York University. He also served as an economist in the Division of Research and Statistics at the Federal Reserve Board of Governors. Since the late 1990s, Hassett has been affiliated with the American Enterprise Institute, focusing on taxation, capital formation, and long-term growth. In terms of public policy, he has advised several Republican politicians, including John McCain, George W. Bush, and Mitt Romney. He also served on the White House Council of Economic Advisors during Trump's first term. During Trump's second term, Hassett served as the director of the National Economic Council (NEC).
Hassett and the Crypto World
What sets Hassett apart from other potential Fed chairs is his connection to the cryptocurrency industry. He holds over $1 million in Coinbase stock and has served on the exchange's Academic and Regulatory Advisory Council. He was compensated at least $50,001 for his role on the council. Furthermore, Hassett participated in the White House digital asset working group, which developed recommendations on crypto regulation, stablecoins, and illicit finance controls. This direct involvement has led to speculation that he would adopt a friendlier stance toward crypto if he were to lead the Fed.
Implications for Monetary Policy and Crypto Regulation
Hassett is perceived as favoring a more aggressive approach to cutting interest rates, a view he has expressed throughout 2024 and 2025. He has supported a 50-basis-point rate cut at the Federal Reserve's December meeting. This stance contrasts with what he and his allies consider the "hawkish" approach under Powell. Markets have reacted to the possibility of Hassett's appointment, with the yield on the U.S. 10-year Treasury falling below 4% in late November after reports that he had become a frontrunner. This drop reflected investors' expectations that he would push for a looser monetary policy.
The Federal Reserve plays a crucial role in shaping how banks handle custody, payments, and liquidity for crypto exchanges and stablecoin issuers. A chair with personal exposure to a major crypto platform like Coinbase would face intense scrutiny regarding recusal policies and disclosures. Hassett's supporters say that his understanding of the crypto industry could lead to more informed and balanced regulatory frameworks.
Potential Conflicts of Interest
Hassett's deep ties to Coinbase have raised concerns about potential conflicts of interest. His supporters argue that his experience provides him with unique insights into the crypto space, but critics worry that his financial stake could influence his decisions. If Hassett is nominated, the confirmation process is likely to involve intense scrutiny of his financial disclosures and his plans to avoid any conflicts of interest.
Other Candidates
Besides Hassett, other individuals under consideration for the Fed chair position include current Fed governors Christopher Waller and Michelle Bowman, former Fed governor Kevin Warsh, and BlackRock executive Rick Rieder.
