As of December 16, 2025, Kevin Hassett, the leading contender to replace Jerome Powell as Federal Reserve Chair (Powell’s term ends May 2026), has firmly stated that President Donald Trump would have “no weight” in interest rate decisions if appointed. In interviews (CBS Face the Nation, WSJ CEO Council), Hassett emphasized Fed independence: Trump’s views could be presented but rejected by the FOMC committee—decisions remain data-driven, not political. Trump has pushed for aggressive cuts (to 1% or lower) and consultation rights, calling rate policy a “litmus test” for nominees, with finalists Kevin Hassett and Kevin Warsh. Markets reacted: Bond yields rose on fears of politicization, while prediction markets shifted (Hassett odds ~60%, Warsh ~40%).
This SEO guide for Tapbit traders explores Hassett’s stance, Fed independence debates, crypto market impacts, and 2026 rate outlook—helping you position amid potential volatility.
Key Highlights: Hassett’s Statements On Trump & Fed Rates (December 2025)
Hassett, current National Economic Council Director, downplayed presidential influence:
- “Trump’s opinion would have no weight on the FOMC” (CBS interview).
- “His opinion matters if it’s good, if it’s based on data” – but committee votes independently.
- Supports further cuts (“plenty of room” below current 3.5-3.75% range) but tied to inflation/employment data.
Trump’s view: “I certainly should have a role… my voice should be heard” (WSJ/Politico); litmus test for immediate cuts.
Other contenders: Kevin Warsh (former Fed governor) now tops some lists.
Timeline: Fed Chair Transition & Rate Decisions 2025-2026
| Milestone | Date | Details |
| Latest Rate Cut | December 10, 2025 | 25 bps to 3.5-3.75% (divided FOMC) |
| Hassett/Warsh Interviews | December 2025 | Trump finalizing nominee |
| Nomination Announcement | Early 2026 | Senate confirmation needed |
| Powell Term Ends | May 2026 | New chair assumes role |
| Potential First Cuts Under New Chair | Mid-2026 | Depends on data/inflation |
Divided FOMC (dissent on pace) signals ongoing debates.
Impacts on Crypto Traders on Tapbit
Positive for Crypto:
- Hassett’s dovish lean (“room for cuts”) could ease liquidity, boosting risk assets like BTC/ETH.
- Independence reassurance calms fears of erratic policy.
Risks/Negative:
- Trump pressure → perceived politicization raises long-term volatility (bond yields up on Hassett odds).
- If cuts slow (inflation >2%), carry trades unwind—hurting leveraged alts on Tapbit.
- Crypto correlation: Rate cuts historically lift BTC 20-50% in 3-6 months.
Tapbit Advantage: Low-fee futures (up to 100x leverage) for hedging USD pairs during Fed drama.
Pros & Cons Of Potential Hassett Fed Chair
| Aspect | Pros | Cons |
| Rate Policy | Dovish; supports cuts if data allows | Could over-cut if perceived pressure |
| Independence | Publicly defends Fed autonomy | Trump ties raise conflict concerns |
| Market Reaction | Short-term relief (crypto up on cuts) | Long-term uncertainty (yields rise) |
| Crypto Impact | Easier liquidity for risk-on | Volatility from political noise |
Fed Rate Outlook 2026 & Crypto Price Predictions
| Period | Expected Cuts | BTC Low | BTC Avg | BTC High | Key Driver |
| Q1 2026 | 0-1 (25bps) | $80K | $100K | $120K | New chair confirmation |
| Full 2026 | 2-4 | $100K | $150K | $250K | Independence vs cuts balance |
| 2030 | Steady low | $500K | $1M | $2M+ | Global adoption |
Lower rates = bullish crypto; independence defense = stability.
Trading Strategies on Tapbit Amid Fed Drama
- Long Risk-On: BTC/ETH perpetuals if Hassett confirmed dovish.
- Hedge Volatility: Short USD pairs or stablecoin yields on Tapbit.
- Watch January: Position for nomination announcement.
- Leverage Smart: Use Tapbit’s low fees for 20-50x on majors during news.
Tapbit’s fast execution ideal for Fed event trading.
Final Thoughts for Tapbit Traders
Hassett’s “no weight” assurance defends Fed independence amid Trump’s pressure—likely stabilizing markets short-term while enabling data-driven cuts. For crypto, it’s net positive: Easier liquidity without chaos.
Trade confidently on Tapbit—Zero spot trading fees, high leverage, 24/7 support. Sign up today for BTC/ETH futures
