Trump has nominated Kevin Warsh to replace Powell as Federal Reserve Chairman

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Highlights

Trump nominates Kevin Warsh to lead Federal Reserve
Warsh seen as supporter of tight monetary policy
Senate confirmation may face Democratic opposition

A сontroversial pick

On Wednesday, the White House announced that Trump had formally sent Warsh’s nomination to the upper chamber of Congress, following earlier statements on social media.

Warsh is no newcomer to the Federal Reserve. He served as a member of the Board of Governors from 2006 to 2011 under Presidents George W. Bush and Barack Obama before moving into academia at the Hoover Institution at Stanford University.

His initial announcement in late January as Powell’s potential successor shocked markets, as Warsh is widely viewed as a proponent of tight monetary policy — signaling possible continuity with Powell’s approach.

At the same time, Warsh is known for his balanced stance on Bitcoin. While not a crypto evangelist, he has described Bitcoin as “the best software” from which the financial system should learn.

“If Bitcoin had never existed, gold would probably be much higher today. But if you’re under forty, Bitcoin is your new gold,” Warsh said in a January 2021 interview on CNBC’s Squawk Box.

In a 2025 interview with the Hoover Institution, he noted that cryptocurrency “can provide market discipline or […] show the world that something needs to be fixed.”

Warsh has also invested at early stages in crypto firms including Bitwise Asset Management and Basis, and has served as an advisor to venture firm Electric Capital, which focuses on crypto, blockchain, and fintech.

The Fed needs an independent leader

It remains unclear when the Senate will consider Warsh’s nomination, but his confirmation could face opposition from many Democratic lawmakers. Senate Minority Leader Chuck Schumer said in January that Republican lawmakers “should not advance Mr. Warsh’s nomination,” citing concerns over Trump’s alleged attempts to “absorb the Federal Reserve and undermine its independence.”

According to Schumer, to secure confirmation, Warsh must clearly state that he will preserve the Fed’s independence and shield it from political pressure. Otherwise, “his nomination will not be approved.”

Jerome Powell’s term as Fed Chair expires on May 15, while his term as a member of the Board of Governors runs until January 31, 2028. It remains uncertain whether he will stay on the Board or step down to avoid complicating the transition to a new chair.

As we wrote, White House moves toward final interviews for next Federal Reserve chair

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