Kevin Hassett is the top contender for Federal Reserve chair under Trump, with his ties to Coinbase stirring debate about conflicts of interest.
Summary
- Kevin Hassett, trusted by Trump and favoring rate cuts, is the front-runner for Fed chair as Powell’s term nears its end.
- Hassett owns over $1 million in Coinbase stock and served on its advisory council, raising potential conflict of interest concerns.
- Treasury’s review included other candidates; Trump likely to announce decision before Christmas, with Senate confirmation to follow.
Kevin Hassett has emerged as the leading candidate for Federal Reserve chair in President Donald Trump’s selection process, according to a Bloomberg report published Tuesday.
The White House National Economic Council director ranks at the top of the list as Trump approaches a decision on the central bank’s next leader, Bloomberg reported, citing people familiar with the matter. Trump’s advisers and allies describe Hassett as a longtime associate whom the president trusts on rate policy and believes would favor cutting interest rates more quickly than current chair Jerome Powell, according to the report.
Kevin Hassett as Fed chair could bring digital assets to the fore
Hassett has indicated willingness to succeed Powell if selected, Bloomberg reported. People familiar with internal discussions said Trump seeks a chair more aligned with his preference for lower borrowing costs to support economic growth and markets, including digital assets.
The selection process remains ongoing. Treasury Secretary Scott Bessent has conducted a structured review since summer, recently completing a second round of interviews with Hassett and other candidates, including former Fed governor Kevin Warsh, current governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder, according to reports.
Bessent stated this week there is a “very good chance” Trump will announce his choice before Christmas, though the timing depends on the president and could extend into early 2026.
Powell’s term as Fed chair expires May 15, 2026. He could remain as a governor until January 2028 if not reappointed as chair. The White House is expected to name a successor and seek Senate confirmation in advance to ensure a transition.
Hassett disclosed owning more than $1 million in Coinbase stock earlier this year, according to a financial disclosure cited by Bloomberg. The filing showed the Coinbase stake valued between $1 million and $5 million as vested stock, with total assets of at least $7.6 million. The draft filing, submitted to the Office of Government Ethics, also showed Hassett received $50,001 in salary from Coinbase for work on its Academic and Regulatory Advisory Council, Bloomberg reported.
The council has included other figures with Trump administration connections, including former SEC chair Jay Clayton and former Central Intelligence Agency general counsel Courtney Elwood.
The disclosed financial ties have sparked discussion in Washington and among market participants regarding potential conflicts of interest, given the Federal Reserve’s role in weighing regulations on stablecoins, bank exposures to digital assets and a potential digital dollar.
