Fed Rate Cuts May Be Delayed by Powell's Reappointment

Kevin Hassett, the White House National Economic Council Director, has stated that Jerome Powell's reappointment as a Federal Reserve governor may affect interest rate cut decisions.

This development comes as the Federal Open Market Committee (FOMC) is set to meet and consider further monetary easing. Hassett's comments suggest that Powell's continued presence on the Board could lead to a slower pace of rate cuts, which would have significant implications for the cryptocurrency market.

Crypto traders are closely watching personnel-driven decisions at the Fed, as they believe that the composition of the Board will shape how aggressively rates are cut. The reappointment of Powell, a seasoned moderate, would keep him on the Board alongside President Donald Trump's nominee, Kevin Warsh, who is seen as more open to faster easing.

If Powell remains on the Board, it could cap near-term upside for high-beta assets like altcoins, despite long-term adoption of crypto remaining intact. Traders are now closely watching communications from Hassett, Warsh, and Powell for clues on the first cut's timing, with futures markets still pricing modest reductions in 2026.