President Donald Trump has publicly expressed reluctance to maneuver Kevin Hassett to the Federal Reserve, raising doubts about Hassett's probabilities of succeeding Jerome Powell as Fed chair.
At a conference, Trump said he desired to keep Hassett in his current role, citing concerns that he could lose a trusted adviser if Hassett was sent to the Fed.
BREAKING: President Trump comments on Kevin Hassett, expected alternative for Fed Chair Powell:
“You were amazing on TV today, I actually wish to keep you where you might be.”
“If I move it, these Fed people don't talk much, I'd lose you. That's a serious concern of mine,”… pic.twitter.com/em0C28Oe6A
– The Kobeissi Letter (@KobeissiLetter) January 16, 2026
Kevin Hassett's Chances Cool
That remark immediately modified expectations for the subsequent Fed chair. As Hassett's probabilities dwindle, attention has shifted to: Kevin Warshwhich is now viewed by markets and Washington insiders as a serious contender.
Hassett was widely discussed as the highest alternative for Powell ahead of the May 2026 move.
But Trump's comments suggest he prefers continuity inside the White House to a move to the central bank.
As a result, prediction markets and analyst calls have moved away from Hassett in recent days.
Kevin Warsh rises in Polymarket odds. Source: Polymarket
Kevin Warsh moves to the front
Kevin Warsh brings previous experience as a central banker, having served as Fed governor throughout the global financial crisis. His profile has long appealed to Republicans, who want credibility with the markets and a clearer separation between monetary policy and day-to-day politics.
Trump's reluctance to part ways with Hassett has propelled Warsh into the highest tier of candidates.
Cryptolens: Warsh vs. Powell
When it involves crypto, Warsh and Powell differ in tone somewhat than results. Powell has maintained a cautious, institutional approach, repeatedly emphasizing financial stability, consumer protection and clear regulatory guidelines for stablecoins and exchanges.
FORMER FED GOVERNOR KEVIN WARSH: Bitcoin “could provide market discipline or tell the world that things should be fixed.”
“Bitcoin does NOT make me nervous.”
“It can often be a superb policeman for politics.” pic.twitter.com/3pYKyCFiCy
– Fiat Archive (@fiatarchive) December 27, 2025
He has avoided endorsing cryptocurrencies as money while allowing markets to develop under existing rules.
Warsh's record suggests pragmatic skepticism. He has recognized Bitcoin's potential as a store of value, often comparing it to gold, but stays cautious about using private cryptocurrencies as on a regular basis money.
This attitude suggests stricter guardrails somewhat than open hostility. Compared to Powell, Warsh seems more open to the talk on digital assets, however the policy outcomes would likely remain conservative.
Powell's clock is running out
Powell's term as Fed Chair ends on May 15, 2026. He can remain on the board of governors until 2028, although chairmen rarely accomplish that after stepping down.
With inflation easing but not yet fully conquered, markets expect limited scope for major policy changes before his departure.
Dealers are increasingly setting prices one other rate of interest cut under Powell before the transition, assuming the information cooperates.
Markets largely expect rates of interest to stay the identical until April 2026. Source: CME FedWatch
A serious reversal now appears unlikely, reinforcing the sensation that the subsequent leader will set the policy direction for 2026 and beyond.
Meanwhile, Powell faces an unusual political backdrop. A Justice Department investigation into his testimony before Congress about cost overruns within the Fed headquarters renovation included subpoenas for records.
Powell said the matter had no impact on monetary policy. Still, the investigation has intensified the talk over the central bank's independence because the leadership transition approaches.
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Article source: beincrypto.com
The post: Trump changes mind on Fed policy as Hassett probabilities fade: Who will replace Powell? appeared first on Crypto Adventure.
