Last updated on January 2nd, 2026 at 07:34 pm
Quick Breakdown
- Trump sparks market frenzy after calling Kevin Hassett a “potential Fed chair,” boosting his odds on Kalshi to 85%.
- Hassett is seen as crypto-friendly, with a large Coinbase stake and criticism of high interest rates.
- A Hassett-led Fed could shift sentiment in crypto markets, especially if it lowers rates or introduces banking rule changes.
Trump’s remark triggers a sharp jump in odds
Prediction markets lit up on Tuesday after U.S. President Donald Trump appeared to drop a major hint about who he wants as the next chair of the Federal Reserve.
During a White House event, Trump introduced economist Kevin Hassett with an eyebrow-raising line, calling him a “potential Fed chair,” a remark that quickly rippled through prediction platforms.
President Trump effectively announces that Kevin Hassett will be the next Fed Chair.
2026 is going to be a wild year. pic.twitter.com/HuFfaekuUM
— The Kobeissi Letter (@KobeissiLetter) December 2, 2025
“It’s a great group, and I guess a potential Fed chair is here too,”
Trump said, praising Hassett as a
“respected person.”
The comment came just hours after Trump reportedly said that the shortlist had narrowed dramatically. “I think we probably looked at 10 and we have it down to one,” he said during a cabinet meeting.
Kalshi and Polymarket odds spike
Following the president’s remarks, odds for Hassett becoming the next Fed chair soared from around 66% to 85% on Kalshi, with Polymarket reflecting a similar surge in confidence.
Hassett, who became director of the National Economic Council in January 2025, is widely viewed as crypto-friendly. He holds a $1 million stake in Coinbase and previously oversaw the digital asset working group, which has kept him on the radar of crypto observers.
Jerome Powell’s term ends in May 2026, and Trump has made no secret of his frustrations with the current Fed chair. In November, he said,
“I’d love to fire his ass … grossly incompetent.”
What a Hassett-led Fed could mean for crypto
Treasury Secretary Scott Bessent is spearheading the search for Powell’s successor, recently signalling that the administration wants a Fed leader who operates more quietly and keeps the central bank out of the spotlight.
While the Federal Reserve does not directly regulate crypto markets, its decisions profoundly influence risk appetite, liquidity, and investor sentiment.
Lower interest rates, which Hassett has openly supported, arguing current rates are too high, typically strengthen crypto markets by pushing investors toward alternative assets.
Additionally, the Fed’s oversight of the banking sector indirectly affects crypto firms’ access to banks, meaning any shift in regulatory tone could have downstream effects on the industry.
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