President Donald Trump announced via Truth Social that he will nominate Kevin Warsh to replace Jerome Powell as Federal Reserve Chairman. The decision sets up a closely watched Senate confirmation process at a time when markets are highly sensitive to changes in monetary leadership. Warsh previously served at the Fed from 2006 to 2011 and later held senior roles in investment banking and policy advisory circles.

This pushed a rapid shift in prediction markets that saw Warsh’s odds surge past BlackRock’s Rick Rieder overnight. Bitcoin BTC $84 183 24h volatility: 0.4% Market cap: $1.68 T Vol. 24h: $79.20 B traded lower on the news, falling to $82,700.

Trump described Warsh as a long-time acquaintance and praised his economic judgment, framing the pick as a move toward restoring discipline at the central bank.

The nomination follows months of criticism from the administration toward the Fed’s handling of inflation, balance sheet expansion, and post-pandemic policy normalization. Powell’s term as chair expires in May, making Warsh’s confirmation timeline a near-term focus for investors.

During his tenure at the Fed, Warsh played a role in crisis-era decision-making and later emerged as a vocal critic of prolonged ultra-loose monetary policy. He has repeatedly called for what he describes as a regime change at the central bank. He argues that extended asset purchases and large balance sheets distort markets and weaken policy credibility. Those views align with a more hawkish approach than the one associated with the Powell era.

Warsh has also taken a more nuanced stance on digital assets, suggesting in past public remarks that Bitcoin could act as a form of market discipline rather than a threat to monetary sovereignty. That position has drawn attention from crypto market participants, though his broader policy framework remains focused on inflation control and fiscal restraint. For institutional investors, the nomination underscores the likelihood of tighter oversight of liquidity conditions if Warsh is confirmed.

Financial markets had largely priced in Warsh as the leading candidate ahead of the announcement, with the dollar strengthening and Treasury yields rising earlier in the week. The nomination comes as investors are already adjusting portfolios amid uncertainty around fiscal negotiations and the risk of a partial government shutdown. Gold and silver prices fell sharply on Jan. 30, though analysts cautioned against attributing the move solely to the Fed chair pick.

The confirmation process is expected to be contentious, with Senate lawmakers likely to probe Warsh’s past criticism of Fed interventions and regulatory policy. His nomination adds another layer of uncertainty to an already complex macro environment, as markets assess how a change in leadership could reshape the Fed’s reaction function over the next cycle.

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