Wall Street Concerns Over Potential Fed Chair Appointment

Wall Street insiders urge President Trump to reconsider the potential appointment of Kevin Hassett as Federal Reserve Chairman, citing risks to market stability and Fed independence.

Appointing Hassett could lead to rising inflation and interest rates, impacting both traditional financial markets and the cryptocurrency ecosystem, as asset sensitivity to policy changes grows.

Wall Street’s Apprehension Over Hassett’s Nomination

Kevin Hassett’s potential nomination as Federal Reserve Chair has raised concerns from Wall Street and U.S. corporate insiders. Key figures, including Kevin Warsh and Christopher Waller, are also in consideration. The lack of independence and market credibility are primary issues highlighted by these insiders.

If Hassett were appointed, long-term interest rates could rise, potentially leading to increased inflation pressures and disrupting financial markets. Mortgage and consumer rates, closely tied to the 10-year Treasury yield, are at risk of spiking.

Market reactions have been characterized by caution from crypto leaders and investors regarding potential fallout. Raoul Pal, CEO of Real Vision, emphasized the importance of Fed independence in maintaining macroeconomic stability.

Bitcoin Price Steady Despite Potential Fed Changes

Did you know? Past Fed appointments during politically sensitive periods have coincided with increased market volatility, affecting both traditional and digital assets, underscoring the importance of central bank independence.

As of December 3, 2025, Bitcoin’s price is $92,271.69, with a market cap of roughly 1.84 trillion, reflecting a 1.51% increase over 24 hours according to CoinMarketCap. Recent data shows Bitcoin experienced a 5.09% rise over the past seven days despite longer-term declines.

Insights from Coincu research suggest that a politically motivated Fed could lead to increased economic volatility. Historical patterns indicate that rising interest rates under such conditions often result in tighter liquidity, impacting not only traditional assets but also the burgeoning crypto markets.