Kevin Hassett, who serves as a White House economic adviser, has reportedly become a contender to succeed Jerome Powell as chair of the Federal Reserve, with an announcement expected by Christmas. As the director of the National Economic Council, Hassett oversaw a digital asset working group established by the White House earlier in the year, leading some to speculate on his potential influence on the crypto sector if appointed. Trump is looking to exert greater control over the Federal Reserve as a strategy to reinforce his monetary policy preferences.
Despite no clear nomination process in motion, his emergence as a leading candidate has garnered attention regarding what his chairmanship could imply for U.S. monetary policy and the crypto landscape. Previously, Hassett’s affiliation with notable economic positions during both the George H.W. Bush and Bill Clinton administrations paints him as experienced yet a steadfast supporter of crypto interests. He notably holds a stake in crypto exchange Coinbase valued at over $1 million.
The implications of a Hassett-led Federal Reserve are substantial, particularly as lower interest rates are typically linked to more favorable crypto prices. Experts such as Juan Leon and Zach Pandl suggest his policies could positively impact the digital asset market, given his history of advocating for loosening rates. The potential to affect access to vital services for crypto companies is another critical aspect as the Federal Reserve governs banks and their operation standards which could influence the operational landscape for digital currency firms.
In the context of this evolving narrative, Trump’s push to assert more control over the Federal Reserve raises questions regarding the repercussions for its independence, as claimed by observers and analysts alike. In an instance earlier this year, Trump sought to remove Fed Governor Lisa Cook through legal channels, reflecting his controversial tactics pushing against the institution’s independence amid accusations that this could culminate in detrimental long-term economic changes.
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