President Donald Trump has officially announced Kevin Warsh as his nominee to chair the Federal Reserve, a decision that puts to rest weeks of speculation surrounding the selection process. In a post on Truth Social, Trump expressed his enthusiasm for Warsh’s extensive experience in monetary policy, finance, and government service, claiming that Warsh could become “one of the GREAT Fed Chairmen, maybe the best.”
Warsh, who is 55 years old, held a position on the Federal Reserve’s Board of Governors from 2006 until 2011, serving under both Presidents George W. Bush and Barack Obama. At the age of 35, he became the youngest Fed governor in history. During his tenure, Warsh represented the Federal Reserve at G-20 meetings and managed internal operations as an administrative governor. Today, he serves as a Distinguished Visiting Fellow in Economics at the Hoover Institution and teaches at Stanford Graduate School of Business, in addition to being a partner at Duquesne Family Office, where he collaborates with billionaire investor Stanley Druckenmiller.
In the lead-up to the announcement, prediction markets indicated a significant shift in favor of Warsh, with traders estimating his chances of being nominated at around 95%—a marked increase from about 39% earlier that same day. Should Warsh be confirmed by the Senate, he would take over from current Fed Chair Jerome Powell, whose term is scheduled to end in May.
Warsh’s nomination has drawn particular interest within digital asset markets, especially given his relatively favorable stance on cryptocurrencies. At a Hoover Institution event last July, he characterized bitcoin not as a threat to the Federal Reserve’s authority but as a valuable asset that could provide insights into policymakers’ decisions. He stated, “Bitcoin doesn’t trouble me. I think of it as an important asset that can help inform policymakers.” Additionally, he likened bitcoin to a generational alternative to gold, suggesting that younger investors are viewing it as “the new gold.”
Warsh also has ties to the crypto industry through his past investments in algorithmic stablecoin projects and advisory roles at crypto firms. However, while he remains open to discussing central bank digital currencies, his views diverge from Trump, who has staunchly opposed the development of a U.S. CBDC.
Despite his amicable views on digital assets, Warsh holds a reputation as a monetary policy hawk. His previous tenure at the Fed was marked by a consistent focus on inflation risks, even amid economic fluctuations. Observers have noted that if the Trump administration seeks someone who would be lenient on inflation, Warsh may not be the right choice. Bloomberg Chief U.S. Economist Anna Wong succinctly stated, “If Trump wants someone easy on inflation, he got the wrong guy in Kevin Warsh.”
