As is known, the term of current FED Chairman Jerome Powell expires in May.
US President Donald Trump, who was eagerly awaiting Powell’s departure, began preparations for his new chairman months ago.
As a result of these efforts, Trump announced his nominee today, declaring Kevin Warsh as the new Chairman of the Federal Reserve.
Trump announced this in a post on Truth Social.
“I am pleased to announce that I have nominated Kevin Warsh as the Chairman of the Federal Reserve Board.”
Trump noted that Warsh currently serves as an economics expert at the Hoover Institute and a lecturer at the Stanford Business School.
Highlighting that Warsh, who will replace Powell, previously served as a Fed governor from 2006-2011, Trump said, “Kevin Warsh became the youngest chairman of the Fed at the age of 35 and served as a member of the Federal Reserve System Board of Governors, Federal Reserve Representative to the G20, and Board Representative to Emerging and Developed Economies in Asia from 2006 to 2011.”
Trump stated that he had known Kevin Warsh for a long time, adding that Warsh would go down in history as one of the greatest and best Federal Reserve Chairmen.
“Above all, it’s absolutely “perfect” and will never disappoint you. Congratulations Kevin!”
Warsh, nominated by Trump, needs Senate confirmation to become the Fed chair.
What Does He Think About Bitcoin (BTC)?
While Kevin Warsh didn’t directly oppose Bitcoin, he adopted a cautious approach.
In his 2018 article published by the Hoover Institution, Warsh pointed out that Bitcoin is a means of payment, but insufficient.
At this point, Warsh, who found Bitcoin inadequate as a means of payment due to its high price volatility, nevertheless made an assessment that he likened to gold as a “sustainable store of value”.
In 2021, Warsh stated in an interview with Andrew Ross Sorkin on CNBC that Bitcoin could be included in an investment portfolio, saying, “Given the current market conditions, it makes sense to include Bitcoin in portfolios.”
Although Warsh doesn’t consider Bitcoin to be money, he believes it can be a store of value similar to gold under certain conditions.
Warsh also argued in an article he wrote for the Wall Street Journal in 2022 that the US should develop its own central bank digital currency (CBDC) in response to China’s digital yuan move.
*This is not investment advice.