U.S. President Donald Trump’s leading candidate for Fed Chair, Kevin Hassett, emphasized that the central bank would remain entirely free from political influence in its interest rate decisions. Speaking on CBS’s Face the Nation, Hassett stated, “The President may hold strong opinions, but the Fed’s duty is to independently determine interest rate policies.” According to Polymarket data, Hassett’s likelihood of being appointed Fed Chair rose to 52%, surpassing former Fed executive Kevin Warsh’s 40%.
Hassett’s “Independent Fed” Message
Hassett, who worked closely with President Trump as the chief economist, is well-known for his collaboration within the administration. However, his remarks during the nomination process about maintaining the independence of the Fed’s decision-making processes have garnered attention. In his CBS appearance, he noted, “Even if I am appointed Fed Chair, the ultimate decisions will be made collectively by the Board and FOMC members, not individually.”
Last week, Trump argued for the right to express opinions on interest rate decisions. Hassett’s response was seen as a message of “distance from political pressure” in market circles. Analysts point out that candidates for Fed Chair during Trump’s tenure generally favored growth-focused monetary policies, but Hassett’s emphasis on independence sets a distinct tone.
Expectations for Rate Cuts and Hope in Crypto Markets
Economists characterize Hassett’s general stance as “dovish.” His support for low-interest-rate policies and expanding monetary approaches is seen as aligning with Trump’s goal to accelerate economic growth. His explicit backing for significant interest rate cuts is considered a factor that heightens risk appetite in the markets.
Cryptocurrency investors also look forward with hope to a potential Hassett era. In the Bitcoin 
$77,420 market, there is strong anticipation for increased liquidity due to Fed rate cuts. Analysts underscore that downward trends in interest rates could boost interest in risky assets, potentially triggering a new wave of price increases for Bitcoin.
While Polymarket data indicates Hassett’s probability of being appointed as Fed Chair rose to 52%, Warsh’s chances climbed from 13% to 40% last week. For those unaware, current Fed Chair Jerome Powell’s term will end on May 15.
