Hasset strongly advocates for interest rate cuts to signal easing, what is the Federal Reserve Chair candidate hinting at

White House economic advisor Hassett recently stated that the Federal Reserve needs to further cut interest rates. This statement may seem simple on the surface, but considering Hassett’s current unique position, its underlying implications are worth in-depth analysis. According to the latest news, Hassett is not only a core economic advisor to the Trump administration but also a leading candidate for the next Federal Reserve Chair, with a probability of 39%, second only to Kevin Waugh’s 41%. His advocacy for rate cuts effectively endorses the policy intentions of the Trump government.

What Hassett’s Dual Identity Means

Policy Spokesperson for the Core Economic Advisor

Hassett currently serves as the Director of the White House National Economic Council, acting as the chief economic advisor to the Trump administration. His call for rate cuts directly reflects the Trump administration’s clear demands to the Federal Reserve. According to relevant information, Trump has explicitly requested the Fed to lower interest rates to 1%, and Hassett’s stance is in line with implementing and reinforcing this policy direction.

The Bonus of Being a Leading Candidate for Fed Chair

More importantly, Hassett is also a top contender for the next Federal Reserve Chair. According to predictive market data from Kalshi, the probability distribution for the Fed Chair candidates is:

Current Fed Chair Powell’s term will end in May 2026. During this critical period, Hassett publicly advocating for rate cuts as a leading candidate carries political implications far beyond those of an ordinary economic advisor.

What This Signal Means for the Market

Clear Policy Direction

Hassett’s statement clearly indicates that regardless of who ultimately becomes Fed Chair, the Trump administration will continue to push for rate cuts. This creates a certain hedge against current market expectations. According to relevant information, the market currently expects the Fed not to cut rates in the first quarter of 2026, but changes in the policy environment could alter this outlook.

Potential Benefits for the Crypto Market

It is worth noting that Hassett also has another role: advisor and shareholder at Coinbase. This makes his attitude toward the crypto market relatively friendly. If Hassett ultimately becomes Fed Chair, his push for rate cuts will directly lower financing costs and increase market preference for risk assets. In an environment of ample liquidity, cryptocurrencies like Bitcoin tend to benefit the most.

Policy Uncertainty Still Requires Attention

Trump’s Pressure and the Fed’s Independence

According to relevant information, Trump has launched an “unprecedented intense pressure campaign” to significantly lower interest rates. The next Fed Chair will face the challenge of balancing policy independence with responding to White House demands. The existence of this political pressure itself increases policy uncertainty.

Timing of Personnel Changes

Trump is expected to announce the new Fed Chair candidate in the first week of January. Based on current signs, Hassett is the most likely candidate, but there is also a possibility that Waller will ultimately win. In any case, the new Chair will face clear rate cut demands from the Trump administration upon taking office.

Summary

Hassett’s advocacy for rate cuts is not an isolated policy suggestion but part of the overall policy intent of the Trump administration. His dual role as an economic advisor and a leading candidate for Fed Chair forms a clear policy signal: rate cuts are the definite direction, with timing and magnitude remaining to be determined. For the crypto market, an improved liquidity environment generally means opportunities for risk assets. However, it is also important to recognize that policy uncertainty and geopolitical conflicts continue to influence market trends, requiring ongoing attention to subsequent developments.