While everyone was still speculating about who Trump’s next Federal Reserve Chair would be, he made it clear right at the White House: “Our next Chair is here today, thank you, Kevin.” — All cameras turned to Kevin Hassett, the mild-mannered, slightly graying 63-year-old economist.

At that moment, Wall Street’s blood boiled instantly. Prediction markets immediately raised Hassett’s chances of being appointed to 86%. Bitcoin surged over 6% overnight, US stock futures went wild, but the dollar was ruthlessly sold off. 2026 hasn’t even started, and it’s already crazy.

1. Who exactly is Hassett? Why is the whole internet calling him the “God of Rate Cuts”?

Don’t mistake him for a populist maniac. Hassett holds a PhD from UPenn, was once an in-house economist at the Fed, a resident scholar at AEI (American Enterprise Institute), and was Trump’s Chairman of the Council of Economic Advisers during his first term. He’s written over a dozen academic books, and was the mastermind behind the 2017 tax reform.

His core labels can be summed up in three phrases:

- Hardcore supply-sider (tax cuts, deregulation, making businesses dare to invest)
- Low interest rate enthusiast (publicly said “The Fed’s rate hikes were too aggressive and stupid”)
- Trump’s most trusted economic brain (loyalty maxed out)

He’s not here to save the market—he’s here to “set it on fire”—pushing US economic growth to Trump’s desired numbers with rate cuts and tax reductions.

First scenario: Short-term frenzy (first half of 2026)
Once Hassett takes office in May 2026, the market will go wild six months in advance:

- Rate cuts faster and deeper than during Powell’s era
- Combined with Trump’s “universal stimulus checks” and a second round of tax cuts
- Stocks, crypto, real estate, and commodities all soar
The Bitcoin community is already celebrating: “This is the most crypto-friendly Fed Chair in history!”

Second scenario: Medium-term cracks (second half of 2026 to 2027)
Money becomes easy to borrow, but inflation quietly starts to rise. The fiscal deficit is already over $30 trillion, and the Fed’s balance sheet hasn’t even shrunk yet. No matter how dovish Hassett is, there’s less room than in 2020. The market starts to ask the existential question: “Is a soft landing still possible this time?”

Third scenario: Ultimate showdown (2027-2028)
Either: supply-side reforms really work, US productivity soars, inflation is tamed, and Trump and Hassett are written into the history books.
Or: inflation spirals out of control, the Fed is forced to hike rates aggressively, asset bubbles burst, and we face a meltdown worse than 2008.

The FOMC votes with 12 members, the Chair has only 1 vote, 7 governors serve ultra-long 14-year terms, 5 rotating regional presidents—this design is meant to check the president’s power. In the short term, this firewall might indeed check Hassett’s urge to turn the Fed into a policy tool.

- “Shadow Chair effect”: From now on, the market is already trading on “Trump’s intentions,” not the data.
- The Chair’s power to set agendas and speak publicly can subtly guide the committee’s expectations.
- Most crucial: the president’s appointment power. There are currently 4 vacancies on the Board of Governors, and during four years Trump can swap out most of the board, gradually filling the FOMC with “his own people.”

History’s cruelest example: Arthur Burns under Nixon. There were FOMC checks and balances then, too—what happened? 1970s stagflation, inflation soared to 14%, the dollar collapsed. The firewall’s there, but if the wind is strong enough, it still shakes.

2026 is “stable happiness.” But it’s more like a Ferrari with no brakes—Trump in the driver’s seat, Hassett on the gas. You only have two choices:

- Buckle up and race with them—go heavy on growth stocks, Bitcoin, real estate, gold, and feast on the 2026 party.
- Get off early—hold enough cash, buy TIPS, allocate to physical assets, and wait for the day they crash.