Trump set to name Kevin Warsh as Federal Reserve chair on Friday, sources indicate
Regarded as a hawkish choice for Federal Reserve leadership, Kevin Warsh has previously expressed views that Bitcoin can act as a constraint on fiscal policy choices.
President Donald Trump is expected to put forward Kevin Warsh, who has expressed favorable views toward Bitcoin, as his choice for the next Federal Reserve chair when the announcement comes Friday, according to reports.
The president indicated on Thursday that his selection to succeed Jerome Powell, the central bank's current chairman whose tenure concludes in May, would be revealed Friday morning. Bloomberg has reported that individuals with knowledge of the situation indicate Trump plans to nominate Warsh for the position.
Earlier reports from Reuters indicated that Trump held a meeting with Warsh on Thursday. Warsh, who previously held the position of Fed governor during the period spanning 2006 through 2011, apparently made a strong impression on the president during their discussion, according to a source who was briefed on the conversation.
The likelihood of Warsh receiving the nomination as the upcoming Federal Reserve chair skyrocketed from 30% all the way to 95% on the prediction platform Polymarket, while Rick Rieder, an executive from BlackRock who had been the previous favorite, witnessed his chances plummet to just 3.4%.
On the prediction market Kalshi, Warsh commands comparable odds of securing Trump's nomination, standing at 93%, whereas Rieder and economist Kevin Hassett trail at 5% and 2%, respectively.
Many observers view Warsh as a Federal Reserve chair candidate who would advocate for fiscal discipline, work toward reducing inflation, and pursue a strategy to move away from quantitative easing policies.
Bitcoin can police policymakers: Warsh
In comparison to Powell, who has mostly rejected the significance of cryptocurrency in the American economy, Warsh maintains a considerably more positive perspective on Bitcoin (BTC).
During a July interview conducted by the Hoover Institution, Warsh rejected the notion that Bitcoin might weaken the Fed's capacity to oversee the economy, arguing instead that the cryptocurrency could "provide market discipline."
"Bitcoin doesn't trouble me. I think of it as an important asset that can help inform policymakers when they're doing things right and wrong."
"I think it can often be a very good policeman for policy," Warsh remarked during that conversation.
Markets reacted to the increasing expectations that Trump would select the more hawkish Warsh rather than Rieder and Hassett, with the US dollar gaining strength and Treasury yields experiencing an upward movement.