Trump nominate as Fed Chair, why has Hassett become “the most dangerous and also the most bullish choice”?

1. In terms of professional ability, he is far stronger than the outside world imagines

Hassett is not a politician. He is an economist who has been deeply engaged for more than 20 years, with research covering taxation, corporate behavior, fiscal policy, energy economics, capital market volatility, and other fields. His academic weight gives him the “face” to serve as Fed Chair.

2. In political terms, he is Trump’s “absolutely loyal person”

This is the key. Unlike Waller, Warsh, Bowman, and even Reed, Hassett is willing to publicly support all of Trump’s policies. When faced with unfavorable data, he is also willing to go on the media to “explain” on behalf of the President. You could say his loyalty is not speculation—it has been concretely demonstrated over the past eight years.

What Trump needs is not “someone who makes independent judgments,” but “someone who executes his economic vision.” And Hassett is the core executor and spokesperson for Trump’s second-term economic policy.

3. The relationship between Hassett and the crypto industry is “rare and sensitive”

This is also the core point. The Powell-era authorities have always maintained a conservative stance toward cryptocurrencies, and this differs from Trump’s governing philosophy. But Hassett is different. He holds Coinbase stock worth more than one million dollars, and he also has experience participating in digital asset policy making.

This means: he is not an observer—he is a participant with strong industry understanding.

Is Trump choosing someone who can help U.S. economic growth? Partly. But more importantly—Trump is choosing someone who “will support low interest rates.” This is Hassett’s core value.

Federal Reserve independence: Hassett may take office, but can he be independent?

This is what global markets are most worried about. The Fed’s independence has never been an abstract concept, and this is also the confidence Powell has relied on to ignore Trump’s pressure. The Fed determines: whether interest rates follow the real economy, rather than follow the election cycle.

And Hassett’s biggest problem is not academic ability, but: he is willing to stand on the White House side, rather than stand on the Federal Reserve side.

1. Hassett’s public remarks over the past few months have already shown a tendency

Hassett and Trump’s views are consistent. He believes interest rates are “too high and dragging down growth,” so he advocates “faster and larger rate cuts.” He even said that if he were in office “he would cut rates immediately.” On other aspects it is the same; we can briefly summarize:

• Hassett has accused the labor statistics system of “bias.”

• Hassett agrees with Trump’s questioning of White House economic data.These statements align with Trump’s policy orientation, but are completely opposite to the stance of most Fed officials.

2. Multiple of his remarks are suspected of “politicizing the interpretation of economic data”

For example, while inflation has been rising continuously, he still claims that “the price trend is very good.” This is not an economist’s expression; it is a political adviser’s expression, carrying an obvious political attribute.

3. What does this mean for the Federal Reserve?

If Hassett takes office, the Fed’s three traditional protection mechanisms will be impacted:

• Term independence: Trump’s attempt to fire Cook has already shown that he does not care about legal boundaries.

• Fiscal independence: as budget pressures intensify, the Fed may face pressure to “help digest Treasury debt.”

• Decision independence: the dovish proportion within the FOMC will rise significantly.

The conclusion is clear: it’s not that Hassett cannot be independent, but that he will not actively be independent. His understanding of the economy is not bad, but in the power structure, he is already accustomed to standing on Trump’s side. This will also lead the Fed to perhaps enter the biggest period of uncertainty in decades.

Impact on the crypto industry: bullish, but the risk is huge

This is the section many people care about most. After all, the Fed welcoming a chair who is friendly to cryptocurrencies is what all crypto practitioners hope for. But, once you are in that position you must act for that position. Just like the analysis above: if Hassett takes office as Fed Chair, he will not actively be independent, but there is also the possibility of passive independence.

So, the impact on the crypto industry is also very clear: bullish, but the risk is huge.

Bullish factors

• Hassett himself is crypto-friendly: he not only holds Coinbase shares, but has also participated in regulatory policy, which makes the crypto market extremely look forward to him taking office.

• A low interest rate environment will directly push up crypto assets: over the past decade, bull markets in Bitcoin and Ethereum have all accompanied easing cycles.

• Anti-crypto voices within the Fed will be weakened: especially the Custodia bank rejection incident may be reversed in the future.

• Bank regulatory rules will become more open: including crypto custody, collateralized lending, payment systems, and so on.

Risk factors

But once the Fed’s independence declines, the market will also become highly unstable:

• Crypto asset volatility will expand.

• Liquidity shocks may be more severe.

• The regulatory direction may be influenced by the political cycle.

• Medium- and long-term inflation risks will weaken confidence in USD-pegged stablecoins.

Most dangerous is: if the market starts to doubt the independence of the U.S. monetary system, Bitcoin may rise, but USD assets will bear a deep impact. And, crypto’s bullishness does not mean global finance is bullish—but global finance will directly impact the cryptocurrency market.

Conclusion: Hassett taking office is not the result, but a turning point of the era’s boundary

If Hassett ultimately becomes Fed Chair, he will not be a simple “monetary policy executor,” but the central hub of Trump’s economic strategy. What he represents is not only a direction of interest rates, but a reshaping of the relationship between politics and monetary policy.

• For the stock market, this is a short-term bullishness and long-term uncertainty.

• For the bond market, this is a long-term rise in risk premium.

• For the dollar, this is a potential structural weakening.

• For crypto assets, this is a historic prosperity opportunity, but it must be accompanied by high vigilance.

The reason Hassett’s name causes market shock is not because of him personally, but because: he symbolizes “the possible era in which the White House re-takes control of the Federal Reserve.” This event will become one of the most important watershed moments for the global economy in the next five years.