The post Kevin Warsh’s Fed nomination hints at Bitcoin-friendly future appeared on BitcoinEthereumNews.com.

President Donald Trump announced he will nominate former Federal Reserve Governor Kevin Warsh to lead the US central bank. In a Jan. 30 post on Truth Social, the president confirmed the selection, writing: “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.” Trump’s move follows months of internal jockeying over who would replace Chair Jerome Powell when his term ends in May. Warsh, 55, served on the Fed’s board from 2006 to 2011 and later worked in economic policy, finance, and academia. His return to the central bank is viewed by industry players as a shift toward a leader more willing than Powell to shrink the Fed’s balance sheet and rein in liquidity. This outcome typically pressures speculative assets, even if the policy-rate path eventually turns more dovish. Meanwhile, the nomination lands as investors are already trying to price a leadership change into the 2026 rate path. The Fed held rates steady this week, pausing its easing cycle, and interest-rate futures have pointed to June as the next likely cut, which would occur under the next chair. A rate-cut nominee with a balance-sheet plan Trump has repeatedly criticized Powell for not lowering rates faster, and he has signaled he wants a chair aligned with pushing down borrowing costs. This message resonates with households facing higher mortgage rates and with a White House focused on growth and federal financing costs. Warsh, however, is not being interpreted as a simple “rates down” pick. While his current stance on interest rates is that they should be lower and he has argued that AI-driven innovation can help contain…

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Filed under: News - @ January 31, 2026 8:09 pm