Trump names crypto-friendly Kevin Warsh as pick for Fed chair

President Donald Trump announced Kevin Warsh as his pick to lead the Federal Reserve, confirming speculation that intensified overnight as prediction markets sharply shifted in his favor.

Warsh, 55, previously served on the Federal Reserve's Board of Governors from 2006 to 2011 under Presidents George W. Bush and Barack Obama, and formerly worked as a banker at Morgan Stanley, making him a well-known figure in U.S. economic policymaking circles.

President Trump's formal nomination ends weeks of speculation over his pick, though Warsh still requires Senate confirmation before he can begin a four-year term and officially replace current chair Jerome Powell, whose tenure is scheduled to end in May.

Warsh's bitcoin views and crypto investments

"Bitcoin doesn't trouble me," Warsh said at the time. "I think of it as an important asset that can help inform policymakers when they're doing things right and wrong. It is not a substitute to the dollar. I think it can often be a very good policeman for policy."

Warsh also pointed to the concentration of global engineering talent in the United States, arguing that building emerging technologies domestically creates long-term economic advantages. "It's just the newest, coolest software that will provide us the ability to do things that we could never have done before," he said.

Warsh has also been connected to the crypto industry through early investments in an algorithmic stablecoin project, Basis, and through advisory and investor roles with crypto index manager Bitwise.

However, Warsh's stance on digital assets remains nuanced and he has at times expressed support for central bank digital currency frameworks — something President Trump has vocally opposed and pledged would not happen during his election campaign.

At the same time, Warsh has recently argued for significant changes to the Federal Reserve's framework. He has called for a structural overhaul of the central bank, including a reassessment of the Treasury-Fed relationship, and has criticized the use of the Fed's balance sheet as a tool he says has disproportionately benefited Wall Street — signaling a strong stance against quantitative easing. Warsh has also pointed to productivity gains driven by artificial intelligence as potentially disinflationary, which he has cited as a basis for supporting rate cuts under certain conditions.

Trump's final shortlist had been widely understood to include National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and BlackRock fixed-income chief Rick Rieder. 

Prediction markets had earlier favored Rieder, who led pricing in recent days, before odds shifted sharply toward Warsh in the hours ahead of the announcement.

With Warsh officially named, and markets reacting to his profile and policy stances, attention is turning to how he will potentially steer monetary policy amid competing priorities on inflation, growth, and financial innovation.