Kevin Hassett, who is widely seen as US President Donald Trump’s new candidate to chair the Federal Reserve, has instantly created a buzz in the crypto market, with what is seen as a strong signal on interest rate policy. Bitcoin price rose nearly 3% in the past hour to $93,535.
Minute candlestick chart showing the rise in BTC price.
Hassett, a White House National Economic Council director and a front-runner for Fed chair, said in a statement that the Fed “has ample room to significantly lower interest rates.” Asked if he supported Trump’s call for a “significant rate cut,” Hassett said: “If the data shows that it’s possible, and it’s showing us right now, then I certainly think there’s room to do that.”
When asked by a reporter whether these comments signaled a rate cut of more than 25 basis points, Hassett replied unequivocally: “Yes.” In an interview with Politico on the same day, President Trump said that a rapid rate cut would be a “litmus test” for potential Fed chairman candidates.
Mr. Hassett responded to a question about an independent economic review of whether he would pledge allegiance to Mr. Trump or become Fed chairman.
“I stand by my own judgment, and I believe the president trusts that judgment as well.”
Hassett also highlighted areas for economic expansion, saying, “There is more fiscal space now for stimulus,” and “we will have a reconciliation bill next year.” “This bill considers a number of items, including housing.”
*This is not investment advice.
