Trump Shifts on Fed Pick as Hassett Odds Fade: Who Will Replace Powell?
President Trump expressed a desire to keep Kevin Hassett in his current role, diminishing Hassett's chances to succeed Jerome Powell as Fed Chair.Summary
President Donald Trump publicly indicated hesitation about moving Kevin Hassett to the Federal Reserve Chair position, stating he wants to keep Hassett as a trusted advisor. This comment immediately shifted expectations, causing Kevin Hassett's odds to fade and elevating Kevin Warsh as a leading contender to replace Jerome Powell when his term ends on May 15, 2026.
Warsh, a former Fed governor with experience during the financial crisis, appeals to Republicans seeking market credibility. Regarding cryptocurrency, Warsh is described as having pragmatic skepticism, acknowledging Bitcoin's potential but remaining wary of private cryptos as everyday money, suggesting conservative policy outcomes similar to Powell's cautious approach.
Meanwhile, Powell's tenure is nearing its end amidst easing inflation, with markets anticipating one more rate cut before the transition. Powell is also facing a Department of Justice probe related to Fed headquarters renovation costs, intensifying debates about central bank independence.
(Source：BeInCrypto)