Donald Trump Picks Crypto-Friendly Kevin Warsh as Fed Chair

President Donald Trump has nominated Kevin Warsh to be the next Chair of the Federal Reserve. Trump affirmed his pick in a post on Truth Social. According to the President’s statement, Warsh will succeed Jerome Powell as Fed Chair when Powell’s term ends in May. 

Notably, Trump’s nomination has raised questions in financial markets as investors consider how this leadership change could influence interest rates, inflation, and assets such as Bitcoin (BTC).

Donald Trump Nomination Sparks Questions

Kevin Warsh was a Federal Reserve governor from 2006 to 2011, during the global financial crisis. He is known for his strong opinions on monetary policy discipline and maintaining the central bank’s credibility. Warsh often advocates for tighter control over policies and a careful approach to expanding the balance sheet.

As such, market experts are closely watching how Warsh’s leadership might impact real interest rates. His focus on controlling inflation and reducing excess money in the system could lead to higher real rates over time. However, it is essential to recognize that Warsh’s nomination does not indicate that policy changes will occur immediately.

Any shift in direction will depend on the state of the economy, inflation trends, and choices made by the Federal Open Market Committee (FOMC). Warsh also needs Senate approval before he can become the Fed Chair.

Top Fed Chair Contenders

Last month, Trump confirmed that two candidates are leading the contest: former Fed governor Kevin Warsh and Kevin Hassett. Speaking to The Wall Street Journal, Trump also said Warsh sits at the top of his list, while praising both finalists.

Meanwhile, in that same month, platforms such as Kalshi and Polymarket placed Hassett’s chances at around 85%. After Trump’s comments, those odds fell sharply. At this time, Hassett was leading on Kalshi with about 50%, while Warsh followed closely at 39%.

During the same interview, Trump also said future Fed leadership should consult with him on interest rate policy. While he acknowledged that the chair should not simply follow White House views, Trump argued that his opinion should be taken into account.

Pompliano Warns Against Firing Current Fed Chair

However, in April 2025, crypto advocate and investor Anthony Pompliano voiced strong opposition to Trump’s suggestion to remove Fed Chair Jerome Powell. Anthony referred to the move as risky and irresponsible. He also said such action could set a dangerous precedent, especially if driven by personal disagreement over monetary policy.

“I do not believe that the President of the United States should come in and unilaterally fire the Fed President”, he stated firmly. His concerns are echoed by U.S. Senator Elizabeth Warren, who warned that such a move could erode investor confidence and potentially trigger market panic.

Such political meddling, analysts fear, could rattle traditional investors and also reverberate through the crypto markets. Historically, lower interest rates have buoyed risk-on assets such as Bitcoin, which thrives in high-liquidity environments. But if trust in financial governance crumbles, even crypto could suffer whiplash.