Donald Trump Nominates Bitcoin-Supportive Kevin Warsh for Federal Reserve Leadership
Former Federal Reserve governor Kevin Warsh has been selected by President Donald Trump to take over from Jerome Powell as chair of the Federal Reserve, initiating a contentious Senate approval process.
President Donald Trump announced on Friday his intention to nominate Kevin Warsh, a former governor of the Federal Reserve, to take over from Jerome Powell as the leader of the nation's central bank, paving the way for what promises to be an intense confirmation process in the Senate.
Trump made the announcement through his Truth Social platform, validating Thursday's reporting that indicated the President would proceed with selecting the 55-year-old former Fed official and one-time Morgan Stanley banker as his top pick for the role.
In his statement, the President indicated his longstanding acquaintance with Warsh and expressed complete confidence that he would be remembered as among the "GREAT Fed chairmen, maybe the best."
Both prediction market platforms and financial sector analysts had been increasingly forecasting Warsh as Trump's probable selection, with betting odds climbing dramatically in the hours before Friday's official declaration.
Warsh's record at the Fed
From 2006 through 2011, Warsh held a position on the Federal Reserve Board and has subsequently emerged as a vocal opponent of excessively accommodative monetary policy, advocating for a "regime change" at the central bank and raising concerns about its balance sheet growth following the financial crisis.
Compared to Powell, who has consistently minimized the significance of cryptocurrency for the American economy, Warsh has demonstrated a considerably more optimistic stance toward Bitcoin (BTC).
During a July conversation at the Hoover Institution, Warsh dismissed suggestions that Bitcoin would undermine the Federal Reserve's capacity to manage the economy, proposing alternatively that the digital currency might serve as a mechanism for market discipline.
Market reaction and gold sell‑off
The announcement of Warsh's nomination arrives at a time when market participants have already begun reassessing risk assets, Bitcoin included, in light of expectations for a potentially more hawkish Federal Reserve chairman and concerns surrounding a possible partial shutdown of the US government.
Peter Schiff, a prominent advocate and analyst of gold, maintained that today's "crash" in precious metals like gold and silver was unrelated "to Trump nominating Kevin Warsh to be Fed chair."
Schiff contended that Trump would not have selected Warsh if he believed he would adopt a hawkish stance, adding that "even the most hawkish FOMC members are still doves."
The nomination must still undergo confirmation proceedings in the US Senate, where legislators are anticipated to thoroughly examine Warsh's previous advocacy for more restrictive monetary policy and his critiques of how the Powell-led Fed has handled regulatory matters and crisis management interventions.