President Donald Trump has officially nominated Kevin Warsh as his pick to chair the Federal Reserve, an announcement that followed intense overnight speculation and a significant shift in prediction markets favoring Warsh. Trump formally declared his decision on Truth Social, commending Warsh's extensive background in monetary policy, finance, and government service, and predicting he would be one of the "GREAT Fed Chairmen, maybe the best."

Kevin Warsh, 55, brings considerable experience to the role, having previously served as a member of the Federal Reserve’s Board of Governors from 2006 to 2011 under both Presidents George W. Bush and Barack Obama. He made history as the youngest Fed governor at the age of 35. During his earlier tenure, Warsh was the Fed’s representative to the G-20 and managed internal operations as an administrative governor. Currently, he is a Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution and a lecturer at Stanford Graduate School of Business. He also serves as a partner at Duquesne Family Office, collaborating with billionaire investor Stanley Druckenmiller.

The nomination concludes weeks of speculation, during which other prominent figures such as National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and BlackRock fixed-income chief Rick Rieder were considered. Warsh, if confirmed by the Senate, is set to replace current Fed Chair Jerome Powell, whose term is slated to expire in May.

Warsh’s nomination has garnered particular attention within digital asset markets due to his relatively crypto-friendly public remarks. At the Hoover Institution’s “Inflation Is a Choice” event last July, Warsh dismissed concerns that Bitcoin poses a threat to the Federal Reserve’s control over monetary policy. He stated, “Bitcoin doesn’t trouble me,” and views it as “an important asset that can help inform policymakers when they’re doing things right and wrong.” While he clarified it is “not a substitute for the dollar,” he sees it as potentially “a very good policeman for policy.” He has also characterized Bitcoin as a generational alternative to gold, suggesting that younger investors increasingly perceive it as “the new gold,” and noting that “if bitcoin never existed, gold would be rallying even more right now.”

Despite these supportive comments, Warsh’s views are nuanced. He holds indirect ties to the crypto industry through early investments in the algorithmic stablecoin project Basis and advisory roles with crypto index manager Bitwise. However, he has also expressed openness to central bank digital currency (CBDC) frameworks, a stance that contrasts with President Trump’s firm opposition to a U.S. CBDC.

Regarding his broader economic philosophy, Kevin Warsh is widely considered a monetary policy hawk. During his previous time at the Fed, he consistently highlighted inflation risks, even during periods of economic downturn. Bloomberg Chief U.S. Economist Anna Wong bluntly summarized this perspective, stating, “If Trump wants someone easy on inflation, he got the wrong guy in Kevin Warsh.”