President Trump’s potential appointment of Kevin Hassett as Fed Chair is raising alarms and excitement, as financial markets eye a power duo with Treasury Secretary Scott Bessent.
Experts suggest this unprecedented pairing could reshape U.S. monetary policy, fueling risk assets like stocks and Bitcoin while pressuring savers and bondholders.
How Could the Duo of Hassett and Bessent Impact the Crypto Market?
If the potential Fed chair is confirmed, the Bessent-Hassett tandem would represent a total inversion of the post-2008 monetary regime.
Sight Bringer, a popular account on X (Twitter), notes that this combination would transform the Federal Reserve from an independent guardian of price stability into a liquidity tool aligned with Treasury policy.
“This is a regime rewrite,” the research firm wrote, emphasizing coordinated management of debt, liquidity, and growth.
Historically, central bank independence was paramount. Now, a Treasury-Fed alignment reminiscent of the 1940s and 1950s could prioritize growth over austerity, soft-cap yields, and support for risk assets. This could be a recipe for a clear boon for Bitcoin.
Bessent and Hassett advocate a growth-first ideology. Reportedly, President Trump could have Bessent serve both as Treasury Secretary and top economic adviser.
The general sentiment is that this would enable policy coordination on a scale unseen in decades.
“You cannot shrink a debt load this large without blowing up the system. You can only outgrow it or inflate it away,” SightBringer stated.
Recent projections support this optimism. Treasury Secretary Bessent predicts GDP growth of 4% or more in the first quarter of 2026, citing strong consumer activity and favorable macroeconomic trends.
Hassett has similarly expressed extreme bullishness toward equities and Bitcoin, with industry insiders calling him a “turbo dove” for risk assets.
Short-Term Liquidity Concerns in the Face of Strategic Dollar Management
Despite long-term optimism, some analysts warn of near-term challenges. Michael Nadeau highlights that tightening liquidity in the banking sector could offset the benefits of expected rate cuts.
Slower fiscal spending, tariffs, and lower interest payments to private creditors may temporarily suppress liquidity, delaying the anticipated risk-asset rally.
In other words, while the ideological shift is bullish for Bitcoin and stocks, investors could face a short-term choppy market before the structural impact takes hold.
Trump’s team is reportedly intent on weakening the dollar to boost US exports, reduce imports, and encourage the reshoring of industrial production. Lower interest rates would support these objectives while simultaneously creating a macro environment favorable to risk assets.
Analysts note that this aligns with long-term objectives for global capital flow and fiscal dominance, further supporting Bitcoin’s narrative as a hedge against potential policy-driven inflation.
Based on this, a crypto and bond market split has already emerged, amid concerns that Hassett could pursue rapid rate cuts despite stubborn inflation.
If Bessent and Hassett are confirmed, the US could enter an era where coordinated fiscal and monetary policy amplifies liquidity and prioritizes growth over austerity.
Bitcoin investors may view this as a historic opportunity, while savers and fixed-income holders face growing risks.
Short-term caution is advised, but the macro backdrop suggests that the era of “higher for longer” interest rates could be over, potentially unlocking a multi-asset rally in 2026.
