Kevin Warsh, the president’s nominee for chairmanship of the Federal Reserve Board was announced on Friday by Donald Trump. Federal ReserveWarsh confirms speculation that grew overnight after prediction markets dramatically shifted to his favor.
“I am pleased to announce that I am nominating Kevin Warsh to be the CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,” Trump wrote In a Truth Social post, Warsh was praised for his background in finance, government, and monetary policy. Trump said Warsh will go down in history as “one of the GREAT Fed Chairmen, maybe the best.”
Warsh 55, previously served As a member of Presidents George W. Bush, Barack Obama and the Federal Reserve Board of Governors between 2006-2011, he became the youngest Fed Governor in history. He was 35 years old. As the Fed’s G-20 representative, he also oversaw the Fed’s internal operations in his role as administrative governor.
Warsh has been a Shepard Family distinguished visiting fellow in economics at the Hoover Institution since 2005. lecturer Stanford Graduate School of Business. Duquesne Family Office where he works with billionaire Stanley Druckenmiller.
Polymarket traders had priced Warsh’s chances of selection at approximately 95% by the time the announcement was made late Thursday. This is up from 39% the previous day. Kalshi markets also showed the same probabilities, after Trump announced he would make his decision on Friday.
Kevin Warsh, if confirmed by the Senate would succeed current Fed chair Jerome Powell whose tenure is due to end in May.
It ends speculation that Trump was considering Kevin Hassett as the director of his National Economic Council, Christopher Waller (current Fed Governor), and BlackRock’s fixed-income chief Rick Rieder.
Kevin Warsh’s Bitcoin and Crypto Views
Warsh’s nomination has attracted particular interest from the digital asset market due to his crypto-friendly comments. The Hoover Institution “Inflation Is a Choice” Warsh rejects bitcoin’s threat to the Federal Reserve.
“Bitcoin doesn’t trouble me,” Warsh stated at the time. “I think of it as an important asset that can help inform policymakers when they’re doing things right and wrong. It is not a substitute for the dollar, but it can be a very good policeman for policy.”
He has also described bitcoin as a generational alternative to gold, remarking that “if bitcoin never existed, gold would be rallying even more right now,” while suggesting younger investors increasingly view bitcoin as “the new gold.”
Kevin Warsh has indirect ties to the crypto industry through early investments in the algorithmic stablecoin project Basis and advisory roles with crypto index manager Bitwise. However, his views remain nuanced; he has previously expressed openness to central bank digital currency frameworks — a position that contrasts with Trump’s firm opposition to a U.S. CBDC.
Despite his openness to bitcoin, Kevin Warsh is widely regarded as a monetary policy hawk. During his previous tenure at the Fed, he consistently emphasized inflation risks, even during periods of economic stress.
Bloomberg Chief U.S. Economist Anna Wong recently summarized the view bluntly: “If Trump wants someone easy on inflation, he got the wrong guy in Kevin Warsh.”
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Source: bitcoinmagazine.com
