White House Insider Kevin Hassett Favored for Fed Chair

Hassett’s call is rising: Trump’s economic ally

According to officials familiar with the situation, the Trump administration’s selection process for the successor to the Fed chairman is nearing completion. Current National Economic Council Director Kevin Hassett is considered by many to be the most likely candidate. If Hassett ultimately takes over, he will continue Trump’s core economic policies, particularly maintaining alignment with the White House on monetary policy, which also symbolizes a potential redefinition of the Fed’s “political independence.”

Extension of Rate Cut Theory: White House Goals More Clearly Defined

Hassett and Trump are closely aligned on economic policy, both believing that the Fed should take more aggressive action to cut interest rates to stimulate the economy. Supporters argue that Hassett’s appointment could accelerate policy coordination and promote a more accommodative funding environment. However, some officials caution that Trump is known for his unpredictability, and final decisions could still be overturned. In response, White House spokesperson Karoline Leavitt stated, “Any speculation is just that—speculation—until the president makes a formal announcement.”

Gray area: The Fed Chairman still has uncertainties.

Although there is ongoing heated discussion in the market, a senior official revealed that the candidate list for the Fed chair has not yet been finalized and submitted to the White House. This position is one of the few that allows the US president to directly influence monetary policy, hence it carries significant political implications.

Looking back, Trump has publicly criticized the current chairman Jerome Powell’s interest rate decisions as “too conservative” multiple times, and even hinted at regretting his initial appointment. This leadership change is clearly aimed at a shift in policy.

Hassett’s economic propositions

Hassett has long advocated that the Fed should be more proactive in cutting interest rates, believing that the current level of rates is too high and puts pressure on the real economy, while loose monetary policy is a key tool for maintaining growth. This position aligns completely with Trump, making him stand out among numerous candidates. If he ultimately takes over, the Fed may become the main force driving a new round of easing cycle, which will also directly affect the liquidity of the dollar and the allocation of funds in global markets.

Global market reactions and impacts

Although the official results have yet to be announced, the market has already begun to price in potential policy changes. Investment institutions generally expect that once Hasset takes the helm, the Fed may restart the rate-cutting cycle, shifting capital market sentiment to a more positive outlook. For the cryptocurrency market, this could mean a new round of liquidity release, increasing investors’ risk appetite. In the short term, the price fluctuations of Bitcoin and other risk assets will intensify, while the long-term outlook will depend on the policy pace of the FOMC and global capital flows.

Summary

Hassett’s strong rise is not only an indicator of personnel changes at the Fed but also reflects the deep layout of the White House’s economic strategy. Regardless of who the final candidate is, what truly affects the global market is still the cycle of interest rates and the trend of dollar liquidity. For investors, observing policy turning points is more indicative of the next movements in the asset market than personnel changes.