U.S. President Donald Trump is expected to nominate Kevin Warsh, a Bitcoin-friendly economist, as the next chair of the Federal Reserve, according to reports. The announcement is scheduled for Friday.
Trump confirmed Thursday that he will reveal his pick to replace current Fed chair Jerome Powell, whose term expires in May. Bloomberg cited sources familiar with the matter saying Warsh is the likely nominee.
Reuters previously reported that Trump met with Warsh on Thursday. A source familiar with the discussion said Warsh made a strong impression on the president. Warsh served as a Fed governor from 2006 to 2011.
Following the reports, Warsh’s chances of becoming Fed chair soared from 30% to 95% on prediction market Polymarket, while the former frontrunner, BlackRock executive Rick Rieder, saw his odds drop to just 3.4%.
Warsh holds similar odds of being Trump’s Fed chair pick on Kalshi, at 93%, while Rick Rieder and economist Kevin Hassett trail at 5% and 2%, respectively.
He is widely seen as a nominee who would prioritize fiscal restraint, lower inflation, and an eventual exit from quantitative easing.
Bitcoin can keep policymakers in check: Warsh
Warsh has a far more favorable view of Bitcoin than current Fed chair Jerome Powell, who has largely dismissed the cryptocurrency’s role in the U.S. economy. In a July interview with the Hoover Institution, Warsh said Bitcoin could “provide market discipline,” rejecting concerns that it might undermine the Fed’s ability to manage the economy.
“Bitcoin doesn’t trouble me. I think of it as an important asset that can help inform policymakerswhen they’re doing things right and wrong.”
“I think it can often be a very good policeman for policy,” Warsh said at the time.
The U.S. dollar strengthened and Treasury yields climbed as markets reacted to growing expectations that Trump would choose the more hawkish Warsh over Rieder and Hassett.
