Powell’s Reappointment Could Delay Fed Rate Cuts, Crypto Traders Watch Closely

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Hassett says Powell’s reappointment could delay Fed rate cuts, with crypto watching closely

Kevin Hassett believes that if Jerome Powell is reappointed to the Federal Reserve, it might postpone or lessen the interest rate cuts seen during the Trump administration. This could mean cryptocurrency traders will continue to focus on who’s in charge of monetary policy rather than the economic factors driving it.

Summary

  • White House NEC Director Kevin Hassett warned that Jerome Powell’s reappointment to the Fed Board could sway the timing and depth of interest rate cuts.
  • The Fed has held its benchmark rate at 3.5%-3.75% in Powell’s final meetings as chair, with markets split over how quickly incoming leadership will ease policy.
  • Crypto traders now see Fed personnel politics as a key variable for Bitcoin, Ethereum, and broader digital asset liquidity.

Kevin Hassett, a top economic advisor at the White House, suggested that Jerome Powell continuing as a Federal Reserve governor could influence future decisions about lowering interest rates, adding some unpredictability to the Fed’s plans. This comes as the Fed holds interest rates steady between 3.5% and 3.75%, and as Powell leads his last meetings before leaving his position in May.

According to recent reports, Kevin Hassett believes interest rates could come down in the next few months. However, he notes that how quickly rates are cut will depend on the makeup of the Federal Reserve Board. At the most recent meeting led by Chair Powell, the Fed decided to keep rates unchanged, but four members disagreed – the most significant division within the Federal Open Market Committee (FOMC) in over three decades, highlighting a clear split among officials.

Why Powell’s seat matters for crypto

The situation isn’t simply a theoretical debate. Keeping Jerome Powell on the Federal Reserve Board would provide a voice of experience and moderation while President Trump plans to appoint Kevin Warsh as the new chair. Warsh is generally considered more inclined to lower interest rates quickly, though high inflation and political factors will likely limit his options. As Axios reported, Trump administration officials have recently reduced their public calls for immediate rate cuts, suggesting they might allow Warsh to take the lead on the next economic cycle – a view shared by economist Kevin Hassett.

The back-and-forth about how quickly the Federal Reserve will lower interest rates is significantly impacting the cryptocurrency market. When the Fed cut rates in late 2025, Bitcoin and Ethereum both saw increased investment as lower returns on traditional investments encouraged people to take on more risk. This trend was seen across many cryptocurrencies, as reported by crypto.news. However, with interest rates currently remaining steady between 3.5% and 3.75% and no cuts expected in 2026, major cryptocurrencies have been trading within a limited price range, despite occasional price increases in Bitcoin and Ethereum.

If Jerome Powell remains in his position, the Federal Reserve might be slower to lower interest rates. This could limit potential gains for riskier digital assets like altcoins, even if cryptocurrency adoption continues to grow overall. As we’ve previously reported, Bitcoin and other crypto tokens can quickly change in value when expectations about interest rates shift, as seen in our coverage of Fed transitions and market sell-offs.

As a crypto investor, I’m really keeping a close eye on what Hassett, Warsh, and especially Powell are saying. Everyone’s trying to figure out when the first interest rate cut will happen, but the market isn’t expecting much relief until 2026, even though Trump wants rates much lower. Honestly, if Powell speeds things up or slows them down unexpectedly – maybe because he’s been reappointed – it’s going to shake up everything, not just stocks and bonds, but also the entire crypto market. It feels like Powell’s moves will be a big driver for us in the digital asset space.

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2026-04-30 20:07