Kevin Hassett warns the Fed Board that reinstating Jerome Powell could slow or erode rate cuts from Trump’s era, and cause crypto traders to focus on personnel-driven policy.
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- Kevin Hassett, Director of the White House NEC, warned that Jerome Powell’s reappointment as a member of the Fed Board may influence the timing and extent interest rate reductions.
- Powell held the Fed benchmark rate steady at 3.5% to 3.75% during his final meetings. The markets are split on how fast the new leadership will change policy.
- Now, crypto traders see Fed personnel politics to be a critical variable in Bitcoin, Ethereum liquidity, and the broader market for digital assets.
Kevin Hassett of White House National Economic Council stated that Federal Reserve Chairman Jerome Powell was reappointed as a governor. “may affect interest rate cut decisions,” The path to monetary ease in the United States is now uncertain. Powell, who is about to step down from his position as Fed chairman in May, made the comments as Powell was chairing one of the last meetings prior to stepping down.
Hassett, in recent comments relayed to U.S. Media, has repeatedly asserted that “there is ample opportunity to reduce rates in the upcoming months,” While also acknowledging the fact that the Fed Board composition will determine how aggressively the cuts are implemented. At Powell’s last meeting as chair, officials again voted to hold rates steady, with four members dissenting—the highest level of disagreement since 1992—underscoring a deeply divided Federal Open Market Committee (FOMC).
Powell’s seat is important for crypto
It’s not just a matter of academic debate: Powell being reappointed as a Governor would maintain a moderate voice on the Board, while President Donald Trump will be installing Kevin Warsh to become the Fed Chair. Warsh is seen as more open-minded to faster easing than Powell but is constrained by politics and inflation. Trump officials recently reported to Axios that they have been in discussions with the Fed about a possible faster easing. “softened” They may signal their intention by pressing for immediate reductions in public spending. “wait for new chairman Warsh and let him lead the next cycle,” Hassett’s position is one that Hassett has also echoed.
The tug of war between the Fed and crypto market participants over how fast they cut rates directly impacts dollar strength, currency liquidity, and risk appetite. Bitcoin’s value will increase when the Fed cuts rates at the end of 2025.BTCEthereum (ETHNews from multiple cryptos showed that both experienced a resurgence of inflows due to lower real returns pushing investors away from the curve. stories. The federal funds rate is at 3.5-3.75%, and there are no plans to cut it in 2026. Major tokens continue to trade in narrower ranges, despite some rallies. Bitcoin You can also find out more about the following: Ethereum.
Powell’s continuing presence on the Board could lead to a slower path of easing, which would cap short-term growth for altcoins and high beta assets. However, long-term crypto adoption will remain intact. This is a continuation of previous crypto.news’ coverage on Fed Transition Risks. story The sale of stocks in one country is a result of macroeconomic factors. story This chart shows how rapidly Bitcoin and DeFi can revalue when rates expectations change.
The futures market is still only pricing in modest reductions for 2026, even though Trump prefers to reduce the rate. “substantially lower” rates. Any surprise acceleration or delay in cuts—driven by Powell’s reappointment dynamics—will likely move not just Treasurys and equities, but also the entire digital asset complex.
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Source: crypto.news
