United States President Donald Trump has unveiled former Federal Reserve Governor Kevin Warsh as his pick for the next chair of the US central bank. This move confirms the circulating rumors after the former Fed governor reportedly met with Trump at the White House on Thursday, January 29.
Trump Pushes Warsh To Senate For Fed Chair Position
On Friday, January 30, Trump, via his social media platform Truth Social, announced his nomination of ex-Fed official Kevin Warsh as the successor of Jerome Powell as the Federal Reserve chairman. Prior to this announcement, prediction platforms had heavily tipped Warsh as Trump’s likely pick.
Warsh previously served on the Federal Reserve Board of Governors from 2006 to 2011 and held senior roles at the White House National Economic Council during former President George Bush’s administration. The former Morgan Stanley banker was considered for the Fed chair job in 2017 before Powell was eventually appointed.
Trump said in his announcement:
I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is “central casting,” and he will never let you down. Congratulations Kevin!
Warsh has been a vocal critic of the Federal Reserve’s monetary policy long before Powell became chair. Unsurprisingly, his recent stance appears to align with Trump’s agenda of lowering interest rates. In fact, the former Wall Street executive said in an interview last July that President Trump was right to push the Fed to cut rates.
Trump’s nomination of Warsh as the Fed chair still needs to be confirmed by the US Senate, with many commentators expecting a battle between the executive and legislative arms. While Trump seeks a Fed chair that listens to the White House, a homage that Powell has refused to pay, the Senate believes the Federal Reserve should function independently.
What Does Warsh’s Selection Mean For Crypto?
Warsh and Powell seem to be on opposite sides of the divide when it comes to the cryptocurrency industry and Bitcoin. While the current Federal Reserve chair has consistently played down BTC’s relevance in the greater US economy, Warsh has been fairly positive about the world’s largest cryptocurrency.
In a recent conversation hosted by the Hoover Institution, Warsh said that Bitcoin is an important asset that doesn’t trouble him, and he doesn’t view the coin as a substitute for the dollar. “Bitcoin can help inform policymakers when they are doing things right or wrong,’ the former Morgan Stanley banker said.