Trump Expected to Nominate Bitcoin-Friendly Kevin Warsh as Next Fed Chair
US President Donald Trump is anticipated to nominate Kevin Warsh as the subsequent chair of the Federal Reserve, with an official announcement anticipated Friday morning.
Key Takeaways:
- Kevin Warsh has emerged as the clear favourite to substitute Jerome Powell as Fed chair, with prediction markets pricing his odds above 90%.
- Markets have reacted to the prospect of a extra hawkish Fed, with the greenback strengthening and Treasury yields rising.
- Warsh’s comparatively constructive view of Bitcoin might sign a shift in tone on the Fed towards digital property.
Multiple media shops, including Bloomberg, have reported that Warsh has emerged as Trump’s decide to substitute present Fed chair Jerome Powell, whose time period expires in May.
Reuters earlier reported that Trump met with Warsh on Thursday, citing a supply aware of the dialogue who stated the previous Fed governor made a robust impression.
Warsh Emerges as Clear Fed Chair Favorite as Prediction Odds Surge
Warsh served on the Federal Reserve’s Board of Governors from 2006 to 2011 and has remained an influential voice on financial coverage since leaving the central financial institution.
Prediction markets rapidly mirrored the shift. On Polymarket, Warsh’s odds of being nominated surged from round 30% to 95%, whereas former frontrunner Rick Rieder of BlackRock noticed his probabilities fall sharply.
Similar dynamics performed out on Kalshi, the place Warsh was priced at 93%, far forward of economist Kevin Hassett and Rieder.
Warsh is broadly considered as a extra hawkish candidate who would favor fiscal self-discipline, a harder stance on inflation and a continued transfer away from quantitative easing.
Anticipation of his nomination has already rippled by way of markets, with the US greenback strengthening and Treasury yields ticking increased as buyers adjusted expectations for future financial coverage.
Unlike Powell, who has usually downplayed Bitcoin’s position within the US monetary system, Warsh has expressed a extra receptive view of the cryptocurrency.
In a July interview with the Hoover Institution, he argued that Bitcoin doesn’t threaten the Fed’s authority and will as a substitute act as a type of market suggestions.
“Bitcoin doesn’t bother me,” Warsh stated on the time, including that it may possibly “present market self-discipline” and serve as “an excellent policeman for coverage.”
His feedback have resonated with crypto market members who see Bitcoin as a hedge towards coverage missteps.
If confirmed, Warsh’s appointment would mark a notable shift in tone on the Fed, with potential implications for danger property as properly as the broader debate over the position of digital currencies within the US financial system.
Fed Standoff Keeps Rates on Hold as Bitcoin Struggles for Momentum
US President Donald Trump has intensified strain on Jerome Powell, together with threats of a legal investigation, however the Federal Reserve has again held interest rates steady, citing stable development and still-elevated inflation.
Powell declined to touch upon the investigation and defended the Fed’s independence, warning that politicizing financial coverage would undermine the establishment’s credibility.
The rate decision weighed on Bitcoin, which slipped after the announcement and has repeatedly failed to break above $90,000.
Analysts say the shortage of near-term price cuts is limiting demand for danger property, even as equities and gold hit document highs.
Prediction markets and Wall Street forecasts now level to a low chance of cuts earlier than mid-year, with expectations pushed towards the again half of 2026.
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