US President Donald Trump has sent his nomination of Kevin Warsah to the Senate as chairman of the Federal Reserve. This means that the upper house of Congress will soon vote on this candidacy.
Trump officially endorsed Warsh
It is worth recalling that Warsh worked at the Federal Reserve during the presidency of George W. Bush and then Barack Obama (2006-2011). He then became a Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution at Stanford University.
The new head of the Fed and the issue of bitcoin
If Bitcoin had never existed, gold would be appreciating even more now, but I think if you are under 40, Bitcoin is your new gold.
In turn, in a 2025 interview with the Hoover Institution, he said that cryptocurrency “can provide market discipline or (…) let the world know that something needs to be fixed.” In other words, BTC is supposed to be a litmus test of the economy.
However, it is not really clear how Warsh will affect cryptocurrencies. If he cuts interest rates (and everything indicates this), it should help the market recover. It will be worse if it reduces the Fed’s balance sheet and thus reduces the amount of fresh money on the market. This, in turn, may hit the valuation of BTC.
It is currently unknown when the Senate will review Warsh’s nomination. It is known that many Democrats will be opposed. Not for substantive reasons, but for political reasons. Upper House Minority Leader Chuck Schumer said in January that the Republican Party “cannot advance Mr. Warsh’s nomination” given Trump’s attempts to “destroy (the independence of) the Federal Reserve.” He referred to Trump’s attacks on Powell. The US president has been pressuring the Fed for months to cut interest rates more aggressively, and he has also threatened Powell with a lawsuit – accusing him of mismanaging the renovation of the central bank’s headquarters.
(Warsh) must make clear that he will maintain the Fed’s independence and free it from bullying from Donald Trump, otherwise he cannot be approved
Schumer said now.
