Kevin Hassett Discusses Possible Fed Rate Cuts Amid Supply Shocks

2 mins mins

Key Points:

Kevin Hassett mentions the potential for Fed rate cuts due to supply-side shocks.
Impact on cryptocurrency markets not yet confirmed.
Potential for increased liquidity benefits risk assets like BTC and ETH.

White House economic official Kevin Hassett indicates potential interest rate cuts given favorable supply shocks, as reported by Jinshi.

His statement could affect cryptocurrency markets, potentially boosting BTC and ETH due to lower borrowing costs and increased liquidity.

Fed Rate Cut Speculations and Potential Market Effects

Kevin Hassett’s remarks, as reported by Jinshi, allude to room for interest rate cuts by the Federal Reserve in response to positive supply-side shocks. This statement has captured the attention of financial analysts monitoring potential macroeconomic adjustments.

Should interest rates decrease, risk assets like cryptocurrencies might experience enhanced liquidity due to lowered borrowing costs. The market is observing potential reactions, though no immediate on-chain changes have been confirmed yet.

While the specific nuances of Hassett’s comments lack confirmation, historical trends suggest that Fed dovishness typically enriches market sentiment. “President Trump’s voice would have no weight in interest rate decisions if I were selected as Fed chair,” said Kevin Hassett, providing an insight into how independent voices can affect Fed policies. As of now, no leading cryptocurrency figures or regulatory bodies have issued statements regarding this development.

Historical Rate Cuts and Cryptocurrency Trends

Did you know? In 2019, similar rate cuts by the Federal Reserve led to a significant rise in Bitcoin’s value, marking one of its most notable annual increases.

Bitcoin (BTC) is currently valued at $87,160.95, with a market cap of approximately $1.74 trillion. The recent correction shows a 24-hour change of -2.43% and a steady 90-day decline of 24.61%. Recent trading volumes surged by 73.96%, indicating active market participation. [Source: CoinMarketCap]

bitcoin-daily-chart-5060 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 14:42 UTC on December 16, 2025. *Source: CoinMarketCap*

According to Coincu analysts, any rate cuts could mirror past outcomes where cryptocurrencies like BTC and ETH benefited from increased liquidity. However, regulatory shifts and technological advances will influence the long-term impacts significantly. The unpredictable nature of supply shocks and Fed responses add layers of complexity to future scenarios.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.