The Trump administration is expected to name former Federal Reserve Governor Kevin Warsh as the next chair of the US central bank, as per Bloomberg reports. The U.S. President Donald Trump said that his final decision will be announced on Friday morning, though the choice is not official until a formal announcement is made.
On Thursday evening, Trump brought curiosity among the people without telling the name of his choice for the next Federal chair by saying, “won’t be too surprising” and will be “someone known to everyone in the financial world.” He spoke to the press on the red carpet for the film release of Melania, as per the reports.
Even the prediction markets on Polymarket indicate a strong support for Kevin Warsh, who currently leads with an estimated 93% preference based on approximately $301 million in trading volume.
As of Wednesday’s prediction, Rick Rieder, BlackRock CIO was leading. Then, Kevin Hassett, the director of the National Economic Council, and Christopher Waller, the governor of the Federal Reserve, are also being considered.
As the current Fed chair, Jerome Powell’s term ends May 15, though his governor term runs until January 2028. Warsh served as a Fed governor from 2006 to 2011. Even, Trump nearly picked Warsh in 2018 but chose Powell instead; with that, he has publicly regretted his decision.
Warsh’s Nuanced Stance on Crypto
The nomination of Kevin Warsh as new Fed chair brought up the discussion about his stance on cryptocurrencies, where Jerome Powell has been stringent with regulations on crypto. Whereas Warsh believes in Bitcoin and passed positive comments, as “Bitcoin doesn’t trouble, I think of it as an important asset,” in an interview shared by WayneVaughan, a Bitcoin investor.
However, the reply comment for that post mentioned that Warsh was regarded as historically hawkish, having opposed the Federal Reserve’s use of a large balance sheet and argued that the policy interest rate should be no lower than 3%, and he served at the Federal Reserve during the 2008 financial crisis.
With that, Kevin Warsh’s stance on crypto has subtle differences, and uncertainty about the direction of crypto-related policies. Also, the speculation over Warsh’s potential Fed chair appointment added to market uncertainty, where the crypto market is facing a sharp decline today. Where Bitcoin is trading at $82,983, down by 5.91% in the last 24 hours, as the overall crypto market is down by 5.31% and the market cap is standing at $2.83 trillion.
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