Prediction market odds for Kevin Hassett to become the next chair of the US Federal Reserve have significantly increased following remarks by US President Donald Trump that appeared to hint at his preferred candidate.
During a White House event on Tuesday, Trump introduced guests, referring to Hassett as a "potential Fed chair." He commented, "It’s a great group, and I guess a potential Fed chair is here too. I don’t know, are we allowed to say that, potential? He’s a respected person, that I can tell you. Thank you, Kevin."
Earlier in the day, during a cabinet meeting, Trump reportedly stated that the selection process for the Fed chair had been narrowed down to one individual. "I think we probably looked at 10 and we have it down to one," he was quoted as saying.
Prior to President Trump's comments, Hassett's odds on the blockchain-based prediction market Kalshi were around 66%. These odds have since risen to approximately 85% at the time of reporting. Similarly, on Polymarket, the odds have shown a comparable upward trend.
Kevin Hassett currently serves as the director of the National Economic Council, a position he assumed in January 2025 after being appointed by President Trump.
Hassett is recognized as crypto-friendly, holding a $1 million stake in Coinbase and having previously overseen the digital asset working group. He is among the candidates being considered for the leadership of the Federal Reserve, as Jerome Powell's term is scheduled to conclude in May 2026.
President Trump has maintained a contentious relationship with Jerome Powell during his term. In late November, Trump expressed his dissatisfaction, stating, "I’d love to fire his ass... grossly incompetent," during remarks at the US-Saudi Investment Forum.
Potential Impact of a New Fed Chair on Cryptocurrency
Treasury Secretary Scott Bessent has been assigned the responsibility of leading the search for the next Federal Reserve chair. Regarding the qualities sought in a new leader, Bessent indicated last month that the government is looking for an individual capable of guiding the Fed more discreetly.
"I think it’s time for the Fed just to move back into the background, like it used to do, calm things down and work for the American people," Bessent stated.
While the Federal Reserve does not directly regulate cryptocurrency, its monetary policy decisions and interest rate adjustments significantly influence overall market sentiment.
A decrease in interest rates is generally beneficial for the cryptocurrency market. Hassett has previously voiced criticism regarding the Federal Reserve's interest rate policies, deeming them too high.
Furthermore, the Federal Reserve oversees the banking sector. Any changes in banking regulations, whether tightening or loosening, could affect how cryptocurrency firms interact with financial institutions.