President Donald Trump nominates Kevin Warsh as Fed Chair
TL;DR
President Trump nominated Kevin Warsh as Federal Reserve Chair, replacing Jerome Powell in May. His appointment is seen as bearish for risk assets like Bitcoin due to his focus on monetary discipline, potentially leading to higher interest rates.
Key Takeaways
- •Kevin Warsh was nominated by President Trump to become the new Federal Reserve Chair, with his term starting in May.
- •Warsh's emphasis on monetary discipline could lead to higher real interest rates, making his appointment bearish for risk assets such as Bitcoin.
- •Warsh has experience in crypto, including investing in Basis and advising Electric Capital, but market reactions have been mixed with brief price fluctuations.
What to know:
- President Donald Trump nominated Kevin Warsh to be the new chair of the Federal Reserve.
- The president confirmed his pick on Friday to replace the incumbent Jerome Powell when his term ends in May.
- Warsh's appointment his considered by some to be bearish for risk assets such as BTC given his emphasis on monetary discipline, which could mean higher real interest rates.
- President Donald Trump nominated Kevin Warsh to be the new chair of the Federal Reserve.
- The president confirmed his pick on Friday to replace the incumbent Jerome Powell when his term ends in May.
- Warsh's appointment his considered by some to be bearish for risk assets such as BTC given his emphasis on monetary discipline, which could mean higher real interest rates.
President Donald Trump nominated Kevin Warsh to be the new chair of the Federal Reserve.
The President confirmed his pick in a post on Truth Social on Friday to replace the incumbent Jerome Powell when his term ends in May.
Warsh served on the U.S. central bank’s Board of Governors between 2006 and 2011, the youngest person to ever do so.
He was considered the frontrunner to be Trump's pick, something which may have played a part in bitcoin's BTC$83,577.46 dive to nearly $81,000 late Thursday, as odds of Warsh's nomination spiked on betting sites.
Warsh was an investor in a cryptocurrency project called Basis, which described itself as an algorithmic central bank. He has also served as an adviser for Electric Capital, a VC firm focused on crypto, blockchain and fintech.
However, his appointment his considered by some to be bearish for risk assets such as BTC given his emphasis on monetary discipline, which could mean higher real interest rates.
Bitcoin enjoyed a brief 0.7% lift immediately after Trump's announcement before returning to the $82,600 mark it sat at previously, according to CoinDesk data.
UPDATE (Jan. 30, 12:25 UTC): Adds more detail and context throughout.