U.S. President Donald Trump has officially nominated former Fed Governor Kevin Warsh as the next Fed chair, potentially replacing Jerome Powell when his term ends in May. This marks a positive for the crypto industry as Warsh is considered more pro-crypto, although it remains to be seen what his stance on monetary policy is.
Trump Picks Kevin Warsh To Be The Next Fed Chair
In a Truth Social post, the U.S. president announced that he is nominating the former Fed Governor to be the Chair of the Fed’s Board of Governors. Warsh notably served as a Fed Governor from 2006 to 2011.
Trump further remarked that he does not doubt that Kevin Warsh will go down as one of the greatest Fed Chairs and maybe the best. “On top of everything else, he is “central casting,” and he will never let you down.”
This announcement comes just hours after CoinGape reported that Trump was going to name the former Fed Governor to succeed Jerome Powell. Kevin Warsh got the nod ahead of BlackRock’s Rick Rieder and Fed Governor Chris Waller, who were also among the potential candidates to become the next Fed chair.
Warsh is notably pro-crypto, having praised Bitcoin as a store of value like gold. This is unlike current Fed chair Jerome Powell, who has preferred to avoid discussing crypto and once said they have no plans to hold BTC.
Meanwhile, crypto traders are still pricing in three Fed rate cuts this year despite the nomination of Kevin Warsh, who may be the most hawkish among the candidates who were in contention to succeed Powell. Polymarket data shows a 26% chance that the Fed makes three rate cuts this year. These traders also expect the Fed to hold rates steady until the June FOMC meeting, when Warsh would have taken office.
