Trump Looks Set to Nominate Bitcoin-Friendly Kevin Warsh as Fed Chair

Washington is preparing for a major shift at the Federal Reserve, with reports pointing to a new chair nominee who holds a distinctly different view on monetary policy and digital assets.

Good to Know

• Donald Trump is expected to nominate Kevin Warsh as Federal Reserve chair
• Warsh previously served as a Fed governor from 2006 to 2011
• Warsh has expressed a more open view on Bitcoin than Jerome Powell

Kevin Warsh Rises as Trump Pick for Fed Chair

Kevin Warsh is set to be nominated as the next chair of the Federal Reserve, according to multiple reports citing people familiar with the decision. US President Donald Trump said Thursday that he would announce his pick on Friday morning, with Bloomberg, The Wall Street Journal, and The New York Times all naming Warsh as the expected choice.

The nomination would position Warsh to replace current Federal Reserve chair Jerome Powell, whose term ends in May. Reuters reported earlier that Trump met with Warsh on Thursday, with one source briefed on the discussion saying Warsh left a strong impression during the meeting.

If confirmed, Warsh would return to the central bank after previously serving as a Federal Reserve governor between 2006 and 2011.

A Shift Toward Tighter Monetary Policy

Market observers widely view Warsh as a more hawkish option compared with Powell. He has long argued for tighter fiscal discipline, lower inflation tolerance, and a clearer path away from prolonged quantitative easing.

Those views align with growing political pressure around government spending and balance sheet expansion. Warsh has positioned himself as a policymaker focused on restraint rather than extended monetary accommodation.

Such an approach would likely influence interest rate strategy and liquidity policy at a time when inflation control remains a core concern.

Bitcoin Views Set Warsh Apart

Beyond traditional monetary policy, Warsh has drawn attention for comments that place him apart from Powell on digital assets. Powell has often downplayed Bitcoin role in the US economy, focusing instead on regulation and financial stability risks.

Warsh has taken a different tone. In a July interview with the Hoover Institution, he rejected claims that Bitcoin threatens the Federal Reserve capacity to manage economic outcomes.

“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.”

He went further by framing Bitcoin as a form of external feedback on policy decisions.

“I think it can often be a very good policeman for policy,” Warsh said.

Nomination Comes as Digital Assets Gain Attention

The reported nomination arrives amid broader attention on crypto policy across federal agencies. Regulators continue to weigh how digital assets fit within existing frameworks, including recent guidance from the Securities and Exchange Commission on issuer versus third party tokenized securities.

While Warsh has not called for direct Federal Reserve involvement in crypto markets, his remarks suggest openness to viewing Bitcoin as a signal rather than a threat.