The possibility of President Trump appointing Kevin Hassett as Federal Reserve chair raises alarms and expectations in financial markets that watch risky assets like stocks and Bitcoin. The potential for him to team up with Treasury Secretary Scott Bessent is gaining attention.
Experts predict that this unprecedented combination will change U.S. monetary policy and reduce burdens on depositors and creditors.
Hassett and Bessent team, impact on the coin market?
If the potential chair of the Federal Reserve is confirmed, the Bessent-Hassett combination will completely overturn the monetary system since 2008.
According to Sight Bringer, a popular account on X (SNS), this combination could transform the Fed from an independent guardian of price stability into a liquidity tool aligned with Treasury policy.
“This is a rewriting of the system,” the research firm emphasized, highlighting adjusted management of debt, liquidity, and growth.
Historically, the independence of central banks has been crucial. However, similar to the 1940s and 1950s, the collaboration between the Treasury and the Fed may prioritize growth over tightening, supporting risk assets and creating conditions favorable for Bitcoin.
Bencent and Hasset support a growth-centric ideology. Reports suggest that President Trump believes Bencent could serve simultaneously as Treasury Secretary and chief economic advisor.
The general sentiment is that a large-scale policy adjustment not seen in decades may become possible.
“To reduce such massive debt, the system cannot be allowed to collapse. It will have to be reduced through growth or inflation,” said SightBringer.
Recent forecasts support this optimism. Treasury Secretary Bencent predicts that GDP growth will exceed 4% in the first quarter of 2026, based on consumer activity and favorable macroeconomic trends.
Hasset has also expressed an extremely positive outlook on stocks and Bitcoin, with industry insiders referring to him as a 'turbo dove' on risk assets.
Strategic dollar management...short-term liquidity concerns
While optimistic in the long run, some analysts warn of short-term challenges. Michael Nadow emphasizes that the tightening liquidity in the banking sector could offset the effects of expected interest rate cuts.
Sluggish fiscal spending, tariffs, and lower interest payments to private creditors could temporarily suppress liquidity, delaying the anticipated rally in risk assets.
In other words, the ideological shift may elicit a positive response in Bitcoin and stocks, but investors could face a volatile market in the short term before structural impacts manifest.
According to reports, the Trump team aims for a weaker dollar to promote U.S. exports, reduce imports, and encourage the reshoring of industrial production. Low interest rates will support these goals while creating a macroeconomic environment favorable to risk assets.
Analysts note that this aligns with long-term goals for global capital flows and financial dominance, further supporting Bitcoin's narrative as a hedge against policy-driven inflation.
Based on this, a rift has already emerged between the cryptocurrency and bond markets, due to concerns that Hasset could push for rapid interest rate cuts despite stubborn inflation.
If Bencent and Hasset are confirmed, the U.S. could enter an era of expanded liquidity through strengthened adjustments in fiscal and monetary policy, adopting a growth-first approach.
Bitcoin investors may see this as a historic opportunity, but depositors and fixed-income holders will face greater risks.
In the short term, caution is necessary, but the macro environment suggests that the era of 'persistently high' interest rates may end, potentially leading to a multi-asset rally in 2026.
