Tensions are rising in the U.S. over President Donald Trump's decision regarding the candidate for the head of the Federal Reserve. Sources, including Treasury Secretary Scott Bessent, report that Trump has already made his choice, and an official announcement may come before Christmas.
During a conversation aboard Air Force One, Trump confirmed that a decision will be announced soon. The possibility of an announcement as early as December 2-3 is being considered.
The Kalshi prediction platform shows about 75% probability that the main candidate is Kevin Hassett.
What the choice of Kevin Hassett means
Hassett's appointment would mean a shift to a more aggressive pro-economic policy aimed at stimulating growth.
Key implications for macrofinance:
• faster reduction of interest rates
• higher tolerance for inflation
• weaker dollar in global markets
• stimulating stock market growth
• increasing investment interest in cryptocurrencies
Hassett is associated with an approach reminiscent of pre-2020 policy: the priority is economic growth rather than a rapid fight against inflation. For the markets, this is a signal of a return to cheap liquidity.
Potential impact on the crypto market
A more dovish monetary policy traditionally enhances risk appetite, and therefore:
• stocks may gain strong momentum
• cryptocurrency market — gradual liquidity expansion
• bitcoin and ether will receive support amid expectations of rate cuts
• institutional investors' interest in digital assets may increase
The fact that a decision is approaching is already affecting the market: expectations of rate cuts and a possible shift to a more liquid policy are becoming key topics for investors.
Conclusion
The Trump administration is close to announcing a candidate for the head of the Fed. If the forecast for Kevin Hassett is confirmed, the markets might see a shift towards a more dovish monetary policy, potentially creating favorable conditions for stocks and cryptocurrencies. Investor expectations are focused on the pace of future rate cuts and the strength of the market's reaction to the Fed's new policy.
