Fed Faces Crypto Dilemma: Cautious Leadership Amid Regulatory Uncertainty
- Kevin Hassett, Trump-aligned economist, emerges as top Fed chair candidate with 54% Kalshi odds, favored for dovish rate-cutting stance. - His crypto ties (Coinbase stock, advisory roles) fuel speculation about regulatory easing, though critics warn of potential conflicts of interest. - A Hassett-led Fed could prioritize lower rates and crypto-friendly policies, boosting risk assets like Bitcoin while reshaping regulatory frameworks. - Market watchers await Treasury Secretary Bessent's final decision, wi
Kevin Hassett, who leads the White House National Economic Council, has become the frontrunner to replace Jerome Powell as the Federal Reserve chair. Both prediction markets and political analysts are increasingly backing his nomination. On the Kalshi exchange, traders now estimate a 54% chance that he will be chosen,
Hassett’s reputation as a policymaker open to cryptocurrencies has fueled further debate about his possible influence. He holds more than $1 million in
Under Powell, the Fed has already started cutting rates in 2025, but Trump’s dissatisfaction with the pace has intensified the search for a new chair. Treasury Secretary Scott Bessent, who is overseeing the process,
The potential impact on the crypto sector is twofold. First,
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