Trump says new Fed chief will cut interest rates after Warsh’s nomination

US President Donald Trump said on Friday that he will nominate Federal Reserve Governor and cryptocurrency friend Kevin Warsh to succeed Jerome Powell as head of the US central bank, which now sets the stage for a high-stakes confirmation battle in the Senate.

Jerome Powell’s leadership term ends in May, giving Trump’s frequent critic of the Fed an opportunity to put his idea of ​​”regime change” in monetary policy into practice just as the White House pushes for more control over setting interest rates.

JUST IN: 🇺🇸 President Trump officially nominates pro-Bitcoin Kevin Warsh as the new Chairman of the Federal Reserve!

This is bullish for $ Bitcoin And encryption! 🔥 pic.twitter.com/fAWgqelYBf

— CEO (@Investments_CEO) January 30, 2026

The decision taken by the American President Announce Truth Social confirmed earlier reports that Trump would go ahead with choosing the 55-year-old former Federal Reserve official and Morgan Stanley banker as his preferred candidate.

The president said he has known Warsh for a long time and has “no doubt” that he will be considered “one of the great Fed chairs, perhaps the best.”

Prediction markets and Wall Street commentators have been increasingly tipping Warsh as Trump’s likely choice, with the odds being the case to rise sharply before Friday’s announcement.

What does Trump’s choice of the Federal Reserve mean for cryptocurrencies?

The nomination comes during a turbulent period for digital assets. During this withdrawal, Bitcoin price It fell sharply This week from a high near $90,400 to a low around $81,300.

Bitcoin It has fallen 6.5% in the past seven days to trade at $83,967 as of 11:26 PM EST, despite jumping 1.2% in the past 24 hours.

Historically, the Fed’s decisions on interest rates have been important for cryptocurrencies, as the assets tend to behave like so-called risk investments. When interest rates are high, safer yields like US Treasuries become more attractive, pulling capital away from volatile assets like cryptocurrencies.

Conversely, lower interest rates increase liquidity in the financial system, often pushing investors toward riskier bets.

Warsh is seen as more hawkish than Powell, with his previous criticism of quantitative easing and expanding the Fed’s balance sheet.

* Trump says Warsh will cut interest rates without pressure from the White House
* Trump: Warsh wants to lower interest rates

The market says: No, it doesn’t

— Zero Hedge (@zerohedge) January 30, 2026

Trump’s pick was noticeably more bullish on Bitcoin than Powell, who has repeatedly downplayed the importance of the cryptocurrency in the economy.

However, Warsh, in a recent discussion, rejected the idea that bitcoin would weaken the Fed’s ability to guide the economy, arguing instead that it could serve as a form of market discipline.

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