Odds in prediction markets for Kevin Hassett’s potential appointment as the next chair of the US Federal Reserve surged following hints from US President Donald Trump at a White House event.
During a White House gathering on Tuesday, Trump introduced Hassett, referring to him as a “potential Fed chair.”
“It’s a great group, and I guess a potential Fed chair is here too,” he remarked. “I’m not sure if we’re supposed to say that, potential? He’s a respected person, that I can tell you. Thank you, Kevin.”
Earlier in the day, during a cabinet meeting, Trump reportedly mentioned that they had narrowed the candidates down to one person.
“I think we probably looked at 10 and we have it down to one,” he stated.
After Trump’s remarks, the odds on the blockchain-based prediction market Kalshi for Hassett being nominated as Fed chairman soared to 85%, up from about 66%. Polymarket exhibited a similar trend in the odds following the announcement.
Kevin Hassett is currently the director of the National Economic Council, a position he assumed in January 2025 after being appointed by Trump.
Known for his favorable stance towards crypto, with a $1 million investment in Coinbase and oversight of the digital asset working group, Hassett is among several potential candidates being considered for the Fed leadership, as Jerome Powell’s term is set to expire in May 2026.
Trump’s relationship with Powell has been strained since he took office.
In late November, Trump expressed his desire to dismiss Powell, describing him as “grossly incompetent.”
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How a new Fed impact could influence crypto
Treasury Secretary Scott Bessent is leading the search for the next Fed chair. In a previous statement, Bessent indicated that the government seeks a leader who can operate behind the scenes more quietly.
“I think it’s time for the Fed just to move back into the background, like it used to do, calm things down and work for the American people,” he commented.
Although the Fed does not directly govern crypto regulations, its decisions significantly affect market sentiment by guiding monetary policy and interest rates.
Generally, lower interest rates benefit crypto, and Hassett has previously criticized the Fed for maintaining rates that are too high.
Furthermore, as the Fed oversees banking, alterations to its regulations could directly influence how crypto companies interact with the banking sector.
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