{"id":100175,"date":"2025-12-04T11:27:44","date_gmt":"2025-12-04T16:27:44","guid":{"rendered":"https:\/\/www.businessupturn.com\/usa\/?p=100175"},"modified":"2025-12-04T11:29:54","modified_gmt":"2025-12-04T16:29:54","slug":"will-the-new-federal-reserve-chairman-affect-the-economy-and-crypto","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/will-the-new-federal-reserve-chairman-affect-the-economy-and-crypto\/100175\/","title":{"rendered":"Will the new Federal Reserve chairman affect the economy and crypto?"},"content":{"rendered":"
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For years, Kevin Hassett floated quietly in the background of Washington\u2019s policy machine. Now, his name is being discussed in group chats, trading floors, and dinner tables as the man who could influence the direction of global money for the next decade.<\/p>\n

What\u2019s striking is not just who is being considered, but why. The conversation around the Federal Reserve chair is shifting away from spreadsheets and policy papers toward something far more emotional: the fear that monetary power may soon sit closer to political ambition than at any point in modern US history.<\/p>\n

The stakes are enormous. A new chair will influence interest rates, borrowing costs, crypto liquidity, and the financial credibility of the White House itself.<\/p>\n

What do you need to know about Hassett\u2019s Economic Map<\/h2>\n

Hassett has never hidden his preferences. He has openly said rates should be lower today, a view that puts him in sharp contrast with current Fed Chair Jerome Powell, a leader who built his reputation on caution, pauses, and slow turns.<\/p>\n

Donald Trump has praised Hassett repeatedly, calling him a leading contender to replace Powell. Betting markets reflect that confidence. His nomination odds recently shot above 70%, a level that would normally appear only after a formal announcement.<\/p>\n

Markets, however, didn\u2019t wait. Bond yields moved the moment his name started trending.<\/p>\n

Bond markets react before Politicians do<\/h2>\n

Within hours of Hassett\u2019s emergence as the favorite, yields on the 10-year Treasury rose by roughly 10 basis points. Traders interpreted it as more than a personnel shift. It was a signal of a potentially less independent Federal Reserve.<\/p>\n

Powell earned global trust by being predictable. Hassett signals the opposite: a willingness to respond aggressively to weak data and lean into rate cuts faster than the committee has in years.<\/p>\n

Investors aren\u2019t panicking, but they are recalibrating. The term premium, the extra return investors demand for long-term bonds, is creeping upward. This usually happens when markets fear political noise more than real economic risk.<\/p>\n

If the Fed appears more aligned with the White House than with its economic models, global borrowing costs rise. Ironically, the administration pushing hardest for cheaper money could accidentally make long-term credit more expensive.<\/p>\n

Global markets rarely care about personalities. They care about reliability.<\/p>\n

A chair perceived as politically aligned risks weakening a core American advantage: the credibility of its institutions. Even a small loss of trust can ripple into higher mortgage rates, tighter corporate financing, and costlier government borrowing.<\/p>\n

Powell\u2019s steady voice anchored expectations, even when inflation data moved unpredictably. A Hassett-led Fed would send a different message, not necessarily wrong, but undeniably faster, more assertive, and more political.<\/p>\n

And markets trade mood as much as math.<\/p>\n

<\/h2>\n

The Crypto community\u2019s unexpected hope<\/h2>\n

Crypto traders are watching this moment for another reason entirely.<\/p>\n

Hassett serves on Coinbase\u2019s academic and regulatory advisory council and reportedly holds more than $1 million in Coinbase stock. No Fed chair candidate in history has ever had such deep ties to the digital-asset world.<\/p>\n

Some see this as an exciting shift:<\/p>\n