{"id":93758,"date":"2026-01-30T18:12:26","date_gmt":"2026-01-30T15:12:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=93758"},"modified":"2026-01-30T18:17:37","modified_gmt":"2026-01-30T15:17:37","slug":"trump-nominates-crypto-friendly-kevin-warsh-to-lead-the-fed","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/trump-nominates-crypto-friendly-kevin-warsh-to-lead-the-fed\/","title":{"rendered":"Trump nominates &#8216;crypto-friendly&#8217; Kevin Warsh to lead the Fed"},"content":{"rendered":"<p>On January 30, US President Donald Trump announced the nomination of Kevin Warsh to serve as the next chair of the Federal Reserve after Jerome Powell, whose term ends in May.\u00a0<\/p>\n<p><iframe src=\"https:\/\/truthsocial.com\/@realDonaldTrump\/115983891481988557\/embed\" class=\"truthsocial-embed\" style=\"max-width: 100%; border: 0\" width=\"600\" allowfullscreen=\"allowfullscreen\"><\/iframe><script src=\"https:\/\/truthsocial.com\/embed.js\" async=\"async\"><\/script><\/p>\n<p>The politician said he has known Warsh for a long time and \u201chas no doubt\u201d he will go down in history as \u201cone of the greatest chairs of the Federal Reserve.\u201d\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cPossibly even the best,\u201d added Trump.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>The day before, prediction markets put the odds of this outcome at over 95%. Over the past 24 hours, Warsh\u2019s chances <a href=\"https:\/\/polymarket.com\/event\/who-will-trump-nominate-as-fed-chair\">surged<\/a> by 68% on Polymarket.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Who is Kevin Warsh?\u00a0<\/h2>\n<p>Kevin Warsh is an American financier and banking executive who served on the Federal Reserve Board of Governors from 2006 to 2011.\u00a0<\/p>\n<p>During and in the aftermath of the 2008 financial crisis, he acted as a key liaison between the Fed and Wall Street.\u00a0<\/p>\n<p>Warsh also represented the Federal Reserve at the Group of Twenty (G20) and served as the Board\u2019s emissary to countries in Asia\u2014both emerging and advanced economies.\u00a0<\/p>\n<p>Before that he was Special Assistant to the President for Economic Policy and executive secretary of the National Economic Council at the White House.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cMarkets in general see Warsh\u2019s potential return as a bearish signal for bitcoin. His focus on monetary discipline, high real rates and shrinking liquidity casts the cryptocurrency not as a hedge against fiat debasement, but as a speculative excess that vanishes with the end of the easy-money era,\u201d \u2014 <\/em><a href=\"https:\/\/www.coindesk.com\/markets\/2026\/01\/30\/here-s-why-fed-contender-kevin-warsh-is-seen-as-bearish-for-bitcoin\"><em>believes<\/em><\/a><em> 10x Research founder Markus Thielen.<\/em><\/p>\n<\/blockquote>\n<p>Higher real interest rates are the actual cost of borrowing adjusted for inflation. This \u201ctrue\u201d rate has the strongest impact on financial decisions. When it rises, businesses and investors typically cut exposure to risk assets, including bitcoin.<\/p>\n<h2 class=\"wp-block-heading\">The 2008 crisis\u00a0<\/h2>\n<p>Warsh\u2019s track record only heightens concerns. In the depths of the 2007\u201309 global financial crisis, when the world economy teetered on the brink of deflation, he continued to warn about inflation risks:\u00a0<\/p>\n<ol class=\"wp-block-list\">\n<li>In September 2008, the month Lehman Brothers collapsed, Warsh said: \u201cI am still not prepared to abandon my concerns about inflation.\u201d<\/li>\n<li>Seven months later, when the Fed\u2019s key inflation gauge was 0.8% and unemployment had reached 9%, he repeated: \u201cI remain more concerned about upside risks to inflation than downside risks.\u201d<\/li>\n<\/ol>\n<p>Many experts argue that such a hard line, and the neglect of deflation risks, exacerbated the crisis.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIf his approach had been implemented, it would likely have led to higher unemployment, a slower recovery and greater deflation risks in the 2010s,\u201d Thielen noted.<\/em><\/p>\n<\/blockquote>\n<p>A potential Warsh appointment looks paradoxical: his hawkish reputation sits in direct conflict with Mr Trump\u2019s reflationary, risk-on agenda.\u00a0<\/p>\n<p>The president has repeatedly and harshly criticised Jerome Powell\u2014often resorting to personal insults\u2014for keeping rates high. He says this \u201ckills\u201d the economy.\u00a0<\/p>\n<p>Mr Trump is calling for rapid and deep cuts, urging rates be lowered to about 1% from the current 3.5\u20133.7%.<\/p>\n<p>Hence, many experts doubt that Warsh is a suitable choice for a Fed expected to adhere closely to White House policy.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Kevin Warsh has been monetary policy hawk his entire career and most importantly, during a time when the labor markets fell out of bed. His dovishness today stems from convenience. The President risks getting duped.<\/p>\n<p>\u2014 RenMac: Renaissance Macro Research (@RenMacLLC) <a href=\"https:\/\/twitter.com\/RenMacLLC\/status\/2017060678901596255?ref_src=twsrc%5Etfw\">January 30, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cKevin Warsh has been a monetary \u2018hawk\u2019 his entire career, and\u2014critically\u2014during a period when the labour market lay in ruins. His current \u2018dovish\u2019 rhetoric is a matter of convenience. The president risks being duped,\u201d analysts at Renaissance Macro Research warned.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>Andreas Steno Larsen, founder of the research firm NowcastIQ, <a href=\"https:\/\/x.com\/AndreasSteno\/status\/2017192302427410735\">called<\/a> Warsh a \u201cconvenient\u201d candidate for Mr Trump:\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIn my view, to consider Warsh more of a \u2018hawk\u2019 compared with other candidates like Rick Rieder and Chris Waller is a misperception. Warsh is very close to the Trump family, and I think he got the nod precisely because Mr Trump wants someone in the post with whom he has enough trust to actually \u2018control the agenda\u2019.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>Warsh is indeed closely tied to Mr Trump\u2019s circle. He is married to Jane Lauder, an heir to the Est\u00e9e Lauder cosmetics empire. His father\u2011in\u2011law, billionaire Ronald Lauder, is a longtime political ally of Mr Trump.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">What is his stance on cryptocurrencies?\u00a0<\/h2>\n<p>Warsh takes a much more positive view of bitcoin than Powell, who largely ignored the cryptocurrency\u2019s role in the US economy.<\/p>\n<p>In a July interview with the Hoover Institution, he <a href=\"https:\/\/www.youtube.com\/watch?v=qVFEcg-RIAk\">rejected<\/a> the idea that bitcoin could undermine the Fed\u2019s ability to manage the economy. According to Warsh, the asset can \u201cprovide market discipline\u201d:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cBitcoin does not worry me. I see it as an important asset that can signal to policymakers when they are acting rightly or wrongly. [\u2026] It is the newest and most sophisticated software that will enable us to do what was previously beyond our reach.\u201d<\/em><\/p>\n<\/blockquote>\n<p>Strategy founder Michael Saylor called the candidate for the Fed \u201cthe first Bitcoin\u2011friendly chairman of the Federal Reserve.\u201d\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Soon, Kevin Warsh will be the first pro-Bitcoin Chairman of the Federal Reserve.<a href=\"https:\/\/t.co\/afEBrBFeWX\">pic.twitter.com\/afEBrBFeWX<\/a><\/p>\n<p>\u2014 Michael Saylor (@saylor) <a href=\"https:\/\/twitter.com\/saylor\/status\/2017235357964599336?ref_src=twsrc%5Etfw\">January 30, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As arguments for his potentially positive impact on the industry, some also <a href=\"https:\/\/x.com\/DeepLiq\/status\/2017100929753862552\">note<\/a> that Warsh is an adviser to Bitwise and acts as a business angel for several crypto projects.\u00a0<\/p>\n<p>Critics do not see \u201ca few positive words about bitcoin\u201d as evidence of his true attitude to digital assets. For example, a user going by George Bodine called Warsh \u201cpart of the system.\u201d\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">&#8220;If you&#8217;re under 40, I guess Bitcoin is your new gold.&#8221;<\/p>\n<p>Some people are using this clip and others to paint Warsh as friendly to Bitcoin.<\/p>\n<p>Warsh is not a strong proponent for Bitcoin or an outlier. He is part of the system. A Cantillionaire plugged into the money nipple.<\/p>\n<p>He was\u2026 <a href=\"https:\/\/t.co\/3jcmq3BJF7\">pic.twitter.com\/3jcmq3BJF7<\/a><\/p>\n<p>\u2014 George Bodine (@Jethroe111) <a href=\"https:\/\/twitter.com\/Jethroe111\/status\/2017241041447882969?ref_src=twsrc%5Etfw\">January 30, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cHe was a member of the Fed\u2019s Board of Governors during the global financial crisis and participated in the design and implementation of measures to rescue the economy. He is incredibly wealthy, and his family ties and personal interests ensure that this will come first for him, as will the Fed\u2019s goals,\u201d the user stressed.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>Some also urged the crypto community not to overrate Warsh\u2019s remarks, arguing that he is in fact neutral toward cryptocurrencies, calling bitcoin merely \u201cnew software.\u201d\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Despite the crypto mafia already claiming Kevin Warsh is extremely pro crypto\u2026in reality he\u2019s been neutral at best, interested in blockchain but referring to it as just \u201cshiny new software\u201d, a novelty<\/p>\n<p>OTOH he\u2019s talked against independent stablecoins, instead backing a CBDC <a href=\"https:\/\/t.co\/MNVyRkpm7N\">pic.twitter.com\/MNVyRkpm7N<\/a><\/p>\n<p>\u2014 Rho Rider (@RhoRider) <a href=\"https:\/\/twitter.com\/RhoRider\/status\/2017087818041032766?ref_src=twsrc%5Etfw\">January 30, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In January, current Fed chair Jerome Powell <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-and-privacy-coins-climb-amid-trump-powell-standoff\">said<\/a> that the US Department of Justice had threatened him with criminal prosecution over testimony given to Congress in June 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On January 30, US President Donald Trump announced the nomination of Kevin Warsh as the next Fed chair after Jerome Powell, whose term ends in May.<\/p>\n","protected":false},"author":1,"featured_media":93759,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Trump nominates Kevin Warsh as next Fed chair, stirring debate over bitcoin and policy.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[991,1249,1440,1138,26],"class_list":["post-93758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-donald-trump","tag-federal-reserve-system","tag-jerome-powell","tag-opinions","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"285","promo_type":"1","layout_type":"1","short_excerpt":"Trump nominates Kevin Warsh as next Fed chair, stirring debate over bitcoin and policy.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=93758"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93758\/revisions"}],"predecessor-version":[{"id":93760,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93758\/revisions\/93760"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/93759"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=93758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=93758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=93758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}