Nikolas Sargeant
US President Donald Trump is expected to nominate Bitcoin-friendly Kevin Warsh as the next chair of the Federal Reserve when he announces his selection Friday morning, according to multiple reports citing sources familiar with the decision.
Trump stated Thursday he will announce his pick to replace current Federal Reserve Chair Jerome Powell, whose term concludes in May. Bloomberg, The Wall Street Journal, and The New York Times reported the president is set to nominate Warsh, who served as a Fed governor from 2006 to 2011, for the position.
Reuters reported Trump met with Warsh on Thursday, with one person briefed on the discussion stating Warsh impressed the president during their conversation. The meeting came as Trump finalized his decision on leadership for the central bank amid economic uncertainty and ongoing debates about monetary policy direction.
Warsh's odds of being nominated as the next Federal Reserve chair surged from 30% to 95% on prediction market Polymarket, while former frontrunner Rick Rieder, a BlackRock executive, saw his odds collapse to 3.4%. The dramatic shift reflects growing confidence among bettors that Trump has settled on Warsh following their Thursday meeting.
Warsh maintains similar odds on prediction market Kalshi at 93%, while Rieder and economist Kevin Hassett stand at 5% and 2% respectively. The convergence across multiple prediction platforms suggests information about Trump's decision may have leaked to market participants ahead of the formal announcement.
Warsh is widely viewed as a Federal Reserve chair nominee who would advocate for fiscal restraint, lower inflation targets, and an exit from quantitative easing policies implemented during and after the financial crisis. His policy positions represent a more hawkish stance compared to Powell's approach, which has emphasized employment alongside price stability.
Warsh holds substantially more favorable views of Bitcoin than Powell, who has largely dismissed the cryptocurrency's role in the US economy. In a July interview with the Hoover Institution, Warsh rejected the notion that Bitcoin could undermine the Fed's ability to manage economic policy, instead stating it could "provide market discipline" for policymakers.
"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," Warsh stated. "I think it can often be a very good policeman for policy," he added, characterizing the cryptocurrency as a market signal rather than a threat to monetary authority.
The perspective contrasts sharply with Powell's skepticism toward Bitcoin's economic significance. Powell has repeatedly stated Bitcoin functions more as a speculative asset than a viable currency or store of value, declining to embrace cryptocurrency integration into Federal Reserve policy frameworks.
Warsh's nomination would require Senate confirmation, where he would likely face questions about his monetary policy philosophy, regulatory approach, and views on cryptocurrency's role in the financial system. His previous experience as a Fed governor during the 2008 financial crisis provides familiarity with central bank operations, though his policy positions have evolved since departing the institution.
