🚨 Breaking Confirmation: Kevin Warsh Wins the Federal Reserve 'Iron Throne'
On January 30th (Friday) at 9 AM Eastern Time, Trump posted on Truth Social announcing: "I am very pleased to nominate Kevin Warsh as Chairman of the Federal Reserve Board." Trump praised Warsh as the "Chosen One (Central Casting)" and claimed he "will never disappoint you," predicting he will become the "great, if not the best, Federal Reserve Chairman."
In the election, Warsh defeated another popular candidate, current National Economic Council (NEC) Director Kevin Hassett (Trump stated that Hassett was too important to be away from the White House).
Although Warsh's nomination is seen as a long-term positive for cryptocurrency (reasons below), within hours of the announcement, the market experienced "hawkish panic": the Dollar Index (DXY) surged instantly, while Bitcoin (BTC) and Gold saw a short-term decline.
The reason being, Warsh was known as a "hawk on inflation" (advocating for interest rate hikes and tightening) during his tenure as a Federal Reserve Board member from 2006 to 2011. Old Wall Street traders still remember him as a proponent of "Hard Money."
Compared to Kevin Hassett, who unreservedly supported Trump's interest rate cuts, the market is worried that Warsh might maintain a certain level of "integrity" and not engage in the reckless monetary expansion that the market expects.
But don't be fooled by the short-term decline; Warsh's ascension is actually a significant positive for the medium- to long-term fundamentals of Crypto, primarily reflected in "currency form" rather than "currency quantity":
Warsh has publicly criticized central bank digital currencies (CBDC) multiple times as a "threat to freedom," believing that the Federal Reserve should not compete with private banks through CBDCs.
This directly clears the biggest official competitor for Circle (USDC) and PayPal (PYUSD). Private stablecoins will become America's "de facto digital dollar."
In addition, Warsh has close ties with Wall Street elites (such as Stanley Druckenmiller) and is more inclined to incorporate Bitcoin and crypto assets into a formal financial regulatory framework, rather than suppressing them like Gensler.
