The Fed Chair is about to change: the dovish Haskett may take control of the global financial lifeline.

In late November 2025, former Trump economic advisor Kevin Hassett became the hottest candidate for the next Fed chairman, and this personnel change could reshape the direction of global monetary policy. Current Treasury Secretary Scott Bevin revealed that the final candidate will be announced before Christmas, and the interview process for five candidates is nearing its end. If Hassett, known for advocating aggressive interest rate cuts, is elected, the Fed's current cautious interest rate policy may shift, which could have far-reaching effects on the crypto assets market that is at a critical node.

Policy Shift Signal: Analysis of Hassett's Monetary Policy Stance

As an economic advisor during Trump's presidency, Kevin Hassett has been known for his distinct dovish stance. He has stated in several public forums that, based on the current economic data, the Fed should adopt a more aggressive rate-cutting strategy. This position aligns closely with President Trump's long-standing criticism of the Fed for being “too slow to cut rates,” and has become a key factor in his being a leading candidate for the chairmanship.

From an academic background perspective, Hassett holds a Ph.D. in Economics from the University of Pennsylvania, has served as a senior researcher at the American Enterprise Institute, and has taught at Columbia Business School. His policy proposals are often based on rigorous mathematical models, which distinguishes him from traditional political appointees. During the 2019-2020 period, Hassett accurately predicted the risk of inflation surging post-pandemic, demonstrating his keen insight into economic data.

For the crypto assets market, Hassett's policy inclination may have a dual impact. On one hand, a more accommodative monetary policy typically drives funds towards high-risk assets, and crypto assets like Bitcoin may benefit; on the other hand, aggressive interest rate cuts could trigger concerns in the market about a resurgence of inflation, prompting investors to seek hedging tools. This complex situation requires market participants to plan their response strategies in advance.

Candidate Panorama Scan: Comparison of Advantages and Disadvantages of Five Competitors

The selection process for the Fed chair this time has been exceptionally intense, and the five-person shortlist formed after multiple rounds of interviews covers various factions in the monetary policy field. Aside from Hassett, the other four candidates each have unique competitive advantages and represent different policy directions.

Former Fed official Kevin Warsh is known for his handling experience during the 2008 financial crisis, with a relatively hawkish policy stance that focuses more on inflation control rather than economic growth. Current board member Christopher Waller has recently shown flexibility in his statements, indicating an openness to further rate cuts in December, making this shift in stance a compromise candidate.

Regulatory Vice Chair Michelle Bowman is the only female candidate on the list, and she has long focused on community banking and financial inclusion issues, advocating for policies that emphasize inclusive finance. In contrast, BlackRock executive Rick Rieder represents Wall Street's perspective, and his experience in asset management and risk control may bring new ways of thinking to the Fed.

Key Information on Fed Chair Candidates

Main candidate: Kevin Hassett (former Trump economic advisor)

Other candidates: Kevin Warsh (former Fed official), Christopher Waller (current board member), Michelle Bowman (Vice Chair for Supervision), Rick Rieder (BlackRock executive)

Decision timetable: Announcement before Christmas

Selection of the person in charge: Secretary of the Treasury Scott Bencen

Recent interest rate trends: There have been two rate cuts this fall.

Key points from the December meeting: There are internal differences on the timing of the next interest rate cut.

Concerns of Independence: Political Interference in the Traditional Boundaries of Central Banks

Trump's administration's deep involvement in the Fed's personnel has raised widespread concerns. In addition to the selection of the chair, the government is also conducting a legal lawsuit demanding the dismissal of Fed Governor Lisa Cook, and these actions collectively represent a systematic challenge to the independence of the central bank.

From a historical perspective, the independence of the Fed has always been the cornerstone of financial stability in the United States. Since the 1951 agreement between the Treasury and the Fed, monetary policy decisions should be removed from short-term political pressures. However, in recent years, this traditional boundary has been eroded. Trump publicly criticized Powell's interest rate decisions multiple times during his term, setting a dangerous precedent for presidential intervention in monetary policy.

For the global market, the politicization of the Fed will have far-reaching effects. The erosion of central bank independence may lead to a decline in the credibility of the dollar, which in turn could push investors towards decentralized assets. The “safe haven” attributes of crypto assets like Bitcoin may be further highlighted in this environment, especially as institutional investors seek non-politically correlated assets.

Crypto Assets market participants should closely monitor this trend. Historically, when systemic risks arise in the traditional financial system, Crypto Assets often attract new inflows of funds. If the independence of the Fed continues to be undermined, it may become another structural factor driving the acceptance of digital currencies.

Market Impact Outlook: Interest Rate Policy and the Linkage Mechanism of Crypto Assets

Changes in the leadership of the Fed could reshape global capital flows. There are multiple transmission mechanisms between the current interest rate policy and the prices of Crypto Assets, including channels such as risk appetite, liquidity conditions, and the exchange rate of the dollar, which may undergo significant changes after the new chairman takes office.

Historically, periods of loose monetary policy have typically benefited the performance of Crypto Assets. The interest rate cut cycle in 2019 was accompanied by a significant rise in Bitcoin, while the super loose environment in 2021 further drove the overall boom of the crypto market. If Hasset were to take charge of the Fed, his advocated faster interest rate cuts could replicate a similar market environment.

However, the market also needs to be cautious of excessive optimism. Aggressive interest rate cuts can sometimes signal economic distress rather than purely positive news. If the Fed is forced to rapidly cut interest rates due to recession risks, it may be accompanied by an overall correction in risk assets, and crypto assets may find it hard to remain unaffected. In such cases, funds are more likely to flow into traditional safe-haven assets rather than emerging digital assets.

The specific operational advice for investors is to closely monitor the combined effects of the December Fed meeting and personnel appointment announcements. The dual uncertainty of interest rate decisions and leadership changes may lead to increased market volatility, so it is recommended to appropriately adjust positions and enhance risk management. In the medium to long term, the trend of monetary policy easing remains a positive factor for crypto assets infrastructure projects and innovative digital assets.

Historical Experience Reference: The Correlation Between Fed Leadership Changes and Market Cycles

Looking back at the history of Fed chair changes over the past thirty years, it is clear that leadership changes often coincide with market turning points. Greenspan dealt with the dot-com bubble after taking office, Bernanke faced the global financial crisis shortly after he took office, Yellen initiated the normalization of monetary policy during her term, while Powell confronted super inflation after the pandemic.

This historical pattern is not accidental. The assumption of office by a new chairman usually means a reassessment of the policy framework, and the market will test the decision-makers' reaction functions during this period. If Hassett is elected, his first major test may be how to balance the conflicting goals of curbing inflation and supporting economic growth, which is essentially similar to the challenges currently faced by Powell.

The impact of the Fed's policy shift on the emerging asset class of crypto assets is more complex. On one hand, a decrease in interest rates lowers the opportunity cost of holding non-yielding assets, which is a direct benefit for coins like Bitcoin; on the other hand, if accommodative policies lead to a resurgence of inflation expectations, it may strengthen the anti-inflation narrative of crypto assets. This dual effect makes it difficult to predict the specific impact, but the overall direction is undoubtedly positive.

From an asset allocation perspective, investors can refer to the market performance during the Fed's policy shift period in 2018-2019. At that time, Bitcoin initially followed the decline of risk assets, but rebounded first after the confirmation of the interest rate cut cycle, ultimately closing the year with gains. The probability of this initial suppression followed by a rise pattern repeating in the current environment should not be underestimated.

The Eve of Institutional Reform: The Global Impact of the Reshaping of the Fed's Role

The potential leadership changes at the Fed are not only a domestic event for the United States, but will also trigger a chain reaction in the global financial system. As the de facto global central bank, the policy direction of the Fed influences the cost of funds from Europe to emerging markets, and the crypto assets market, being a global market, will directly feel the impact of these changes.

Particularly noteworthy is that if the Fed abandons its independence under political pressure, other major central banks may be forced to follow suit. This global trend of central bank politicization contrasts sharply with the “algorithmic replacement of bureaucracy” concept proposed by cryptocurrency advocates, which may accelerate the acceptance process of decentralized financial systems.

From a technical perspective, the Fed's policy shift may also affect the correlation between crypto assets and traditional assets. In certain market conditions, the correlation between Bitcoin and gold has already shown an upward trend, indicating that investors are beginning to view it as a similar safe-haven asset. If the credibility of the Fed's policies is damaged, this trend may further strengthen.

Standing at a historical turning point, market participants should look beyond short-term price fluctuations and pay attention to deeper institutional changes. Changes in the leadership of the Fed may just be a microcosm of the restructuring of the global financial order, and the role that Crypto Assets play in this restructuring process is worth continuous observation. Wise investors will pay attention to the statements of policymakers and the actual flow of funds on the blockchain, thus discovering opportunities amid the transformation.