President Trump's possible appointment of Kevin Hassett as the head of the Fed raises concerns and excitement as financial markets watch the power duo alongside Treasury Secretary Scott Bessent.
Experts suggest that this unprecedented combination could change U.S. monetary policy, which would support riskier assets like stocks and Bitcoin while simultaneously putting pressure on savers and bondholders.
How could the Hassett and Bessent duo impact the cryptocurrency market?
If a potential Fed leader is confirmed, the Bessent-Hassett duo would represent a complete reversal of post-2008 monetary regulatory policy.
Sight Bringer, a popular X (Twitter) account, notes that this combination would transform the central bank from an independent price stability overseer into a liquidity tool aligned with Treasury policy.
"This is a rewriting of regulation," wrote a research firm highlighting the coordinated management of debt, liquidity, and growth.
Historically, the independence of central banks was paramount. Now the Treasury Department and Fed's stance, reminiscent of the 1940s and 1950s, could prioritize growth over austerity, soften yields, and support risk assets. This could be a clear advantage for Bitcoin.
Bessent and Hassett advocate for a growth-oriented ideology. Reports suggest that President Trump could appoint Bessent as both Treasury Secretary and his chief economic advisor.
The general sentiment is that this would enable policy coordination on a scale not seen in decades.
"You cannot reduce such a large debt burden without the system breaking down. You can only grow over it or through inflation," SightBringer stated.
The latest forecasts support this optimism. Treasury Secretary Bessent predicts GDP growth exceeding 4% or more in the first quarter of 2026, citing strong consumer activity and favorable macroeconomic trends.
Hassett has also demonstrated extreme bullishness towards stocks and Bitcoin, with industry insiders calling him a "turbo-dove" for risk assets.
Short-term liquidity concerns in the face of strategic dollar management.
Despite long-term optimism, some analysts warn of short-term challenges. Michael Nadeau emphasizes that tightening liquidity in the banking sector could negate the benefits of expected rate cuts.
Slower public spending, tariffs, and lower payments to private creditors may temporarily reduce liquidity, delaying the anticipated price rally of risk assets.
In other words, while the ideological shift is favorable for Bitcoin and stocks, investors may face a volatile market in the short term before structural effects begin.
Trump's team reportedly plans to weaken the dollar to promote U.S. exports, reduce imports, and encourage the return of industrial production to domestic shores. Lower interest rates would support these goals while creating a macroeconomic environment favorable to risk assets.
Analysts note that this aligns with long-term goals regarding global capital flows and fiscal power, further supporting the Bitcoin narrative as a hedge against potential policy-driven inflation.
Based on this, the bifurcation of crypto and debt markets has already manifested, with concerns that Hassett could pursue rapid rate cuts despite stubborn inflation.
Jos Bessent and Hassett are confirmed, the United States could enter an era where coordinated fiscal and monetary policy increases liquidity and prioritizes growth over austerity.
Bitcoin investors may see this as a historic opportunity, while savers and fixed-income investors face rising risks.
Short-term caution is advised, but the macroeconomic backdrop suggests that the era of 'higher for longer' rates may be over, potentially opening the door for a price rally in many assets in 2026.
