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The prospect of President Trump nominating Kevin Hassett as chairman of the Federal Reserve is raising alarms and excitement as financial markets keep an eye on the power duo with Treasury Secretary Scott Besent.
Experts suggest this unprecedented pairing could tighten US monetary policy, boosting risk assets like stocks and bitcoin and squeezing savers and bondholders.
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How can the Hassett and Bescent duo impact the cryptocurrency market?
If confirmed The potential chairman of the Federal ReserveA Besant-Hassett duo represents a complete reversal of the post-2008 monetary system.
Sight Bringer, a popular X Twitter account, suggests that this combination will transform the Fed from an independent guardian of price stability into a liquidity vehicle aligned with Treasury policy.
The research company wrote what you do “This is a rewriting of the system,” emphasizing the coordinated management of debt, liquidity and growth.
Historically, central bank independence has been important. Now, the alignment between the Treasury and the Fed, like the periods in the 1940s and 1950s, could prioritize growth over austerity, set soft ceilings on yields and support risk assets. This could be a recipe for clear Bitcoin growth.
Besant and Hassett advocate a growth-first ideology. President Trump could have Bessent serve as Treasury secretary and chief economic adviser.
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It is generally believed that this will enable policy coordination on a scale not seen in decades.
SightBringer stated: “You can’t reduce a debt load of that size without destroying the system. You can only grow it or inflate it to get away from it.”
Recent forecasts support this optimism. Treasurer Besent expects GDP to grow by 4% or more in the first quarter of 2026, citing strong consumer activity and…Positive macroeconomic trends.
Hassett has expressed extreme optimism about stocks and Bitcoin, and industry insiders have described it as a “turbo dove” 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 warn of near-term challenges. Michael Nadeau points out that Liquidity restriction In the banking sector can compensate the interest Expected reductions in interest rates.
Slower fiscal spending, fees and lower interest payments to private lenders​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ must Thursday reduce liquidity, delaying the expected recovery of risky assets.
In other words, while the ideological shift is positive for Bitcoin and stocks, investors may face a volatile short-term market before the structural impact becomes apparent.
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Team Trump It is mentioned He intends to weaken the dollar to boost American exports, reduce imports and encourage industrial production. what you do Reduction of interest rates It will support these goals while at the same time creating a favorable economic environment for risky assets.
Analysts note that this is in line with the long-term goals of global capital flow and financial control, which supports the narrative of Bitcoin as a hedge against potential policy-induced inflation.
Accordingly, it appeared A split between the cryptocurrency and bond markets Amid concerns that Hassett may seek rapid interest rate cuts despite stubborn inflation.
If Besnett and Hassett are confirmed, the United States could enter an era in which coordinated fiscal and monetary policy increases liquidity and prioritizes growth over austerity.
Bitcoin investors may see this as a historic opportunity, while savers and fixed income holders face increased risks.
Caution is advised in the short term, but the macroeconomic framework suggests that the era of “higher for longer” interest rates may be over, which could open the door to a multi-asset recovery in 2026.
