In recent days, a new leader has emerged in the race for the chairmanship of the Federal Reserve: Kevin Hassett. More and more analysts believe that he is the one with the greatest chance to replace Jerome Powell in 2026.
Why is this such an important message for the markets – especially for the bulls?
🔸 1. Hassett is a candidate “consistent” with the White House line
He has previously worked in the Trump administration and is seen as a loyal and politically predictable person. And that means… a more decisive and less conservative Fed policy.
🔸 2. Advocate for faster and deeper rate cuts
Hassett publicly criticized the current pace of the Fed's actions. According to him, rates should be cut earlier and more aggressively, especially during times of slowdown.
➡️ For markets, this means a Risk-On environment: cheaper money, greater liquidity, and better conditions for risky assets.
🔸 3. Viewed as pro-crypto
Importantly, Hassett holds shares in Coinbase, and investors from the digital asset market perceive him as unequivocally “crypto-friendly.”
If the president, SEC, and the new Fed chair are favorable towards crypto, 2026 could be exceptionally interesting.
🔸 4. “It won’t be boring” – as EndGame Macro writes
If the economy begins to slow down, Hassett is likely to act faster than Powell did in 2019-2020.
Faster cuts = faster liquidity improvement = potentially better environment for:
• equities,
• corporate bonds,
• technology sector.
⚠️ 5. But... the Fed may become more political
Aggressive economic stimulus policy carries the risk of rising long-term inflation expectations. The market will begin to assume that the Fed will tolerate higher inflation if required by economic growth.
📌 Implications for investors
If Hassett does indeed take the position, markets may enter a period of increased volatility, but at the same time – increasing liquidity.
This is one of the key elements of the puzzle for 2026, which large institutions are already pricing in, forecasting further increases in the S&P 500 and risky sectors.
