Who Will Lead the Fed? Hassett Moves to the Front as Markets Watch Nervously

The United States is entering one of the most consequential decision-making periods of the coming year — the selection of the next Chair of the Federal Reserve. This choice will shape the direction of U.S. monetary policy for years to come and influence global markets, interest rates, lending conditions, and the performance of risk assets, including cryptocurrencies. In recent weeks, prediction models have shown a rapid surge in support for Kevin Hassett, a former White House economic adviser. Once just one of several potential candidates, he has now emerged as the dominant frontrunner with an estimated probability of around 55 percent. Behind him is current Fed Governor Christopher Waller with roughly 19 percent and former Fed Governor Kevin Warsh with about 15 percent. Markets are increasingly preparing for a scenario in which Jerome Powell’s term is reaching its final chapter.

Why Hassett Sends a Strong Signal to Markets Hassett is viewed by investors as a candidate capable of shifting U.S. monetary policy more significantly than his competitors. His pro-growth orientation, emphasis on Fed independence, and openness to technological innovation — including digital assets — make him an attractive option for markets that have grown weary of prolonged high interest rates. Hassett has long argued that elevated borrowing costs suppress innovation, weaken industrial performance, and burden households. His appointment would represent a more decisive policy shift than a continuation under Waller, who is perceived as more cautious and aligned with the current path, or Warsh, whose stance is often considered more conservative.

What Hassett Would Mean for Crypto The crypto community is watching the selection of the next Fed Chair with heightened attention. Bitcoin, Ethereum, and other major assets have been reacting to shifting expectations surrounding the December interest-rate decision, weakening U.S. macroeconomic data, and the increasing likelihood of a leadership change at the Fed in 2025. Hassett is widely seen as a candidate who could bring a more favorable environment for digital assets. He is expected to: lower interest rates faster than markets currently anticipateimprove liquidity conditions for risk-on assetsreduce regulatory pressure around crypto innovationssupport stronger institutional inflows into digital assets Lower rates historically boost crypto performance because cheaper capital increases risk appetite. During previous rate-cut cycles, notably between 2019 and 2020, Bitcoin and other major coins often experienced accelerated growth.

Trump vs. Powell: A Long-Running Conflict Shaping the Fed’s Future Jerome Powell has been a frequent target of criticism from Donald Trump for several years. Trump has accused him of slow reactions during crises, overly strict monetary conditions, and ineffective communication. Should Trump have the opportunity to appoint the next Fed Chair, most analysts agree that Powell is unlikely to remain in his position. Hassett fits the profile of a candidate favored by Trump’s economic circle — strongly pro-growth, willing to cut rates more decisively, and committed to policies aimed at expanding U.S. economic strength.

What Markets Could Expect Next Three primary scenarios are currently taking shape:

1. Hassett becomes Fed Chair – risk assets rally

Crypto markets could benefit from cheaper capital, improved liquidity conditions, stronger ETF flows, and a more optimistic investor sentiment. Tech stocks and other growth-oriented sectors would likely react positively. 2) Waller is appointed – continuity and stability

Markets would expect a gradual and cautious pace of rate cuts, similar to the current path. 3) Warsh leads the Fed – the least likely but most hawkish scenario

His more conservative stance would likely create caution in financial markets and heightened volatility in cryptocurrencies.

Conclusion Current prediction models suggest that Kevin Hassett has the strongest path toward becoming the next Chair of the Federal Reserve. His economic approach would likely mean a faster and more pronounced shift toward monetary easing, potentially stimulating the U.S. economy and setting the stage for a renewed crypto rally. The year 2025 may become a turning point for both global finance and digital assets — and the leadership of the Federal Reserve will play a pivotal role in shaping what comes next.

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