President Donald Trump said he will nominate former Federal Reserve Governor Kevin Warsh to replace Jerome Powell as chair of the US central bank.
Nomination and confirmation path
Trump announced the pick on Truth Social after reports circulated Thursday that Warsh was his preferred choice.
Trump said he has known Warsh for a long time and predicted he would be “one of the GREAT Fed chairmen, maybe the best.”
The nomination now heads to the US Senate, where lawmakers are expected to scrutinize Warsh’s prior comments on monetary policy and his criticism of the Powell-era Fed.
Warsh’s Fed record
Warsh served on the Federal Reserve Board from 2006 to 2011.
He has been a frequent critic of ultra-loose policy, arguing for “regime change” at the Fed and questioning the central bank’s post-crisis balance sheet expansion.
Bitcoin angle and market context
Warsh has been more upbeat on bitcoin than Powell, who has repeatedly downplayed bitcoin’s importance to the US economy.
In a July discussion hosted by the Hoover Institution, Warsh argued bitcoin would not weaken the Fed’s ability to steer the economy and could instead serve as market discipline.
The announcement landed as traders were repricing risk assets, including bitcoin, amid uncertainty over Fed policy and the threat of a partial US government shutdown.
Schiff on gold and silver move
Gold advocate Peter Schiff argued the day’s drop in precious metals was unrelated to Warsh’s nomination.
He said Trump would not have nominated Warsh if he believed he would be a hawk.
Schiff wrote:
“Even the most hawkish FOMC members are still doves.”
