Trump picks Kevin Warsh as Fed chair — what it means for rates and crypto

President Donald Trump has named Kevin Warsh as his pick for the next chair of the US Federal Reserve, setting up a leadership change when he would replace Jerome Powell in May 2026, BeInCrypto reported. Warsh is a former Fed governor (2006–2011), the institution’s youngest governor at the time, who worked closely with Ben Bernanke during the global financial crisis and now serves as a senior fellow at Stanford’s Hoover Institution.

The nomination requires Senate confirmation and markets are already reacting to the policy signal behind the pick, the article said. Known historically as an inflation hawk, Warsh opposed extended quantitative easing and pushed for a smaller Fed balance sheet, though he has more recently argued that deregulation and fiscal restraint could allow the Fed to cut rates without stoking inflation.

He has also criticized what he sees as an expanded Fed mandate into climate and social issues. The Fed’s latest decision this week kept rates unchanged at 3.50%–3.75%, with markets expecting the next cut no earlier than mid-2026. BeInCrypto said Warsh’s reputation complicates that outlook: he is unlikely to rush cuts without clear evidence inflation is contained, but could support faster normalization if regulatory and fiscal pressures ease.

kevin warsh, trump picks kevin warsh, federal reserve chair, jerome powell, fed rates 2026, inflation hawk, crypto regulation, stablecoin rules, bitwise investment, basis stablecoin, wholesale cbdc, senate confirmation, fed balance sheet