US President Donald Trump said Friday he plans to nominate Kevin Warsh as the next chair of the Federal Reserve, a move that would replace Jerome Powell and set up a closely watched confirmation fight in the US Senate.
Trump announced the decision on his social media platform Truth Social, ending days of market speculation about who would lead the central bank if he secures another term. Warsh, 55, has long been viewed by investors and political observers as one of Trump’s favored candidates for the role.
In his post, Trump said he had known Warsh for years and expressed confidence that he would rank among the strongest Fed chairs in history, underscoring the personal trust behind the choice.
Why Warsh’s nomination matters now
The pick comes at a moment when markets are highly sensitive to signals about future interest-rate policy, fiscal uncertainty, and the independence of the central bank. Traders had already begun adjusting positions ahead of the announcement, with prediction markets and Wall Street analysts increasingly pointing to Warsh as the likely nominee.
A Warsh-led Fed could mark a sharper break from the post-financial-crisis consensus that has favored prolonged accommodative policy, particularly during economic stress.
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A record shaped by crisis-era policymaking
Warsh served on the Federal Reserve Board from 2006 to 2011, spanning the global financial crisis and its immediate aftermath. Since leaving the Fed, he has emerged as a vocal critic of ultra-easy monetary policy, arguing that years of aggressive stimulus distorted markets and expanded the central bank’s balance sheet too far.
He has repeatedly called for what he describes as a “regime change” at the Fed, pressing for clearer limits on crisis interventions and a reassessment of how monetary policy influences asset prices and risk-taking.
A different tone on Bitcoin and digital assets
Warsh has also taken a more open stance on Bitcoin than Powell, who has often downplayed the cryptocurrency’s broader economic relevance. In a July discussion hosted by the Hoover Institution, Warsh pushed back against the idea that Bitcoin threatens the Fed’s control over the economy.
Instead, he suggested that decentralized assets could serve as a form of market discipline, rather than a direct challenge to central bank authority. That view has drawn attention from crypto investors who see his nomination as potentially less hostile to the sector.
Market reaction and the gold debate
The announcement landed amid broader repricing across risk assets, including Bitcoin, as investors weighed the possibility of a more hawkish Fed leadership and renewed concerns about a partial US government shutdown.
Gold prices also came under pressure, though prominent gold advocate Peter Schiff argued the sell-off was being misattributed. Schiff said the decline in gold and silver had “nothing to do” with Warsh’s nomination, adding that Trump would not have selected him if he truly believed Warsh would pursue aggressively tight policy. Even the Fed’s most hawkish members, Schiff said, remain “doves” by historical standards.
What happens next
Warsh’s nomination now heads to the US Senate, where lawmakers are expected to probe his past criticism of the Powell Fed, his views on regulation, and his approach to crisis management. Hearings are likely to focus on whether he would tighten policy more quickly than his predecessor and how he would balance inflation control with financial stability.
For markets, the confirmation process itself could be as important as the final vote, offering clues about how a potential Warsh-led Federal Reserve might steer monetary policy in the years ahead.
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