Analytical Report: Kevin Hassett as Frontrunner for Federal Reserve Chair (2026)

Kevin Hassett, current Director of the White House National Economic Council under President Trump, has emerged as the frontrunner to replace Jerome Powell as Federal Reserve Chair when Powell’s term expires in May 2026. He is one of five candidates on Treasury Secretary Scott Bessent’s shortlist. Supplementary data confirms Hassett’s policy views (aggressive rate cuts, pro-crypto stance), market reactions, and the timeline for an official announcement.

1. Frontrunner Status
   : Hassett is the leading candidate for Fed Chair, with prediction platforms assigning 52% (Polymarket) and 55% (Kalshi) odds of nomination [2].
2. Shortlist Details
   : The five candidates include Hassett, Fed Governors Michelle Bowman and Christopher Waller, BlackRock’s Rick Rieder, and former Fed Governor Kevin Warsh [4].
3. Policy Views
   : Hassett advocates immediate rate cuts, criticized Powell’s monetary policy as “partisan,” and called for a “clean house” at the Fed [6][7].
4. Announcement Timeline
   : Treasury Secretary Bessent expects a “very good chance” of an announcement before Christmas [5].
5. Market Reaction (Nov 26, 2025)
   : The S&P 500 rose 0.28% while the 10-year Treasury yield remained flat at 4.00% [0].
6. Pro-Crypto Stance
   : Hassett has ties to Coinbase and supports crypto-friendly regulatory frameworks [1][2].

Hassett’s frontrunner status reflects alignment with Trump’s agenda to lower interest rates quickly [2][6]. His criticism of Powell’s “partisan” policies signals a potential shift from the Fed’s recent data-driven approach to more growth-oriented monetary policy [6]. The inclusion of pro-crypto views is unprecedented for a Fed Chair candidate, which could reshape regulatory attitudes toward digital assets [1][2].

The mixed market reaction on Nov 26 (modest S&P gain, flat yields) indicates investor caution: While rate cuts would typically lower bond yields, uncertainty about confirmation timing or policy implementation may be dampening moves [0]. Prediction market odds (52-55%) reflect cautious optimism, as investors weigh rate cut benefits against risks to Fed independence [2].

Critics argue that Hassett’s close ties to Trump could undermine the Fed’s traditional independence [2][6], while supporters highlight his experience in shaping the 2017 Tax Cuts and Jobs Act as evidence of policy expertise [3][4].

1. Monetary Policy
   : Immediate rate cuts under Hassett could stimulate growth but risk inflation. This would benefit housing/tech sectors and weaken the dollar [6][7].
2. Crypto Markets
   : Pro-crypto regulation could boost crypto assets and related stocks (e.g., Coinbase) [1][2].
3. Fed Independence
   : Political alignment may erode trust in unbiased decision-making, increasing long-term bond volatility [2][6].
4. Equity Markets
   : Short-term rate cut expectations could lift stocks, but long-term risks include inflation and confirmation delays [0][5].

• Powell’s term ends May 2026; Trump has criticized Powell for slow rate cuts [5][6].
• The Fed’s dual mandate could shift to prioritize growth over inflation control [6][7].
• Senate confirmation is required; Hassett’s controversial views may face Democratic opposition [2][5].

1. Inflation Data
   : No current figures to validate Hassett’s rate cut calls [6].
2. Senate Support
   : No data on senator backing or opposition points [2][5].
3. Detailed Policies
   : No stance on quantitative easing, balance sheet reduction, or non-crypto regulation [1][6].
4. Final Decision
   : No confirmation of Trump’s choice despite the Christmas timeline [5].
5. Global Impact
   : No data on international investor reactions to a Hassett-led Fed [0][5].