Hassett Defends Fed Independence as Trump Narrows Fed Chair Race to Two Kevins
Kevin Hassett, a leading contender for Federal Reserve chair, reiterated Fed independence on CBS’s Face the Nation, saying presidential views matter only when supported by data and that rate decisions will be judged by the FOMC’s voting members. President Trump has narrowed his shortlist to two finalists — Hassett and former Fed governor Kevin Warsh — and suggested the next chair should consult with him on rate decisions. Prediction markets reacted: Hassett’s odds spiked earlier on Kalshi and Polymarket (around 85%) but fell after Trump praised Warsh; at reporting Polymarket showed Hassett ~52% vs Warsh ~39%. The Fed recently cut rates 25 basis points to a 3.50%–3.75% target range, while Chair Jerome Powell warned of upside inflation risks and downside employment risks. Economists view Hassett as dovish, preferring lower rates and more expansionary policy, which markets say could boost risk appetite. Crypto traders saw little immediate price reaction after the cut, remaining watchful for the Fed chair decision and potential further easing in 2026 that Trump supports. Key SEO keywords: Fed independence, Fed chair, Kevin Hassett, Kevin Warsh, interest rate cut, prediction markets, Polymarket, Kalshi, FOMC vote, crypto market reaction.
Bullish
Hassett is widely described as dovish and his rising probability in the Fed chair race increases the chance of more accommodative monetary policy over the medium term. A dovish Fed chair typically signals a higher likelihood of rate cuts or slower hikes and greater liquidity — conditions that tend to lift risk assets including Bitcoin. The recent 25 bps rate cut and prediction-market movements already priced in a shift toward easier policy; further confirmation via a dovish chair would likely boost risk appetite and crypto demand. Short-term impact: muted — markets stayed flat after the cut as traders await concrete chair appointment and forward guidance. Medium-to-long-term impact: bullish — if Hassett is appointed and pushes for easier policy or signals future cuts (especially the 2026 easing referenced by Trump), liquidity and speculative flows into crypto could increase, supporting price appreciation. Risks: Powell’s caution on inflation and political scrutiny of Fed independence could limit aggressive easing, producing volatility. Overall, this news raises upside potential for crypto but with timing and magnitude dependent on the final chair decision and subsequent policy communication.