As financial markets focus on his power partnership with Treasury Secretary Scott Bessent, there is growing alarm and excitement about President Trump’s potential appointment of Kevin Hassett as Federal Reserve Chairman.
Experts suggest this unprecedented combination could reshape U.S. monetary policy, stimulating risk assets such as stocks and Bitcoin while putting pressure on savers and bondholders.
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How will the duo of Hassett and Bessent impact the crypto market?
If the Fed chair candidate is confirmed, the partnership between Mr. Bessent and Mr. Hassett would represent a complete reversal of the financial system since 2008.
Site Bringer, a popular Twitter account, points out that this combination would transform the Federal Reserve from an independent guardian of price stability to a liquidity tool aligned with Treasury policy.
“This is a rewriting of the system,” the research firm wrote, emphasizing the coordinated management of debt, liquidity and growth.
Historically, central bank independence has been of paramount importance. Now, a Treasury-Fed partnership reminiscent of the 1940s and 1950s could prioritize growth over austerity, soft-cap yields, and support for risky assets. This could be a recipe with clear benefits for Bitcoin.
Bessent and Hassett advocate a growth-first ideology. President Trump reportedly may have Bessent serve as both Treasury secretary and chief economic adviser.
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The general view is that this will allow for policy adjustments on a scale not seen in decades.
“You can’t reduce this much debt without blowing up the system. You have to outweigh it or inflate it,” Sightbringer said.
Recent forecasts support this optimism. Treasury Secretary Bessent expects GDP growth to be above 4% in the first quarter of 2026, citing strong consumer activity and favorable macroeconomic trends.
Hassett has similarly expressed extreme bullishness on stocks and Bitcoin, with industry insiders calling him a “turbo pigeon” for risk assets.
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Short-term liquidity concerns in the face of strategic dollar management
Despite the long-term optimism, some analysts are warning of short-term challenges. Michael Nadeau highlighted that tighter liquidity in the banking sector could offset the benefits of expected rate cuts.
Slower fiscal spending, tariffs, and lower interest payments to private creditors could temporarily constrain liquidity and delay the expected rise in risk assets.
In other words, while ideological shifts are bullish for Bitcoin and stocks, investors could face a volatile market in the short term before the structural effects take hold.
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Mr. Trump’s team reportedly intends to weaken the dollar to increase U.S. exports, reduce imports, and encourage a return to industrial production. Lower interest rates will support these goals while creating a favorable macro environment for risk assets.
Analysts note that this is consistent with long-term goals of global capital flows and fiscal dominance, and further supports Bitcoin’s narrative as a hedge against potential policy-driven inflation.
On this basis, a split between crypto and bond markets has already surfaced amid concerns that Hassett may pursue rapid interest rate cuts despite stubborn inflation.
If Bessent and Hassett are confirmed, the United States could enter an era of coordinated fiscal and monetary policy that expands liquidity and prioritizes growth over austerity.
Bitcoin investors may see this as a historic opportunity, but savers and bondholders face increased risks.
Although caution is needed in the short term, the macro backdrop suggests that the era of “prolonged high interest rates” may be over, and a multi-asset bull market may begin in 2026.
