Trump says new Fed chair will cut rates after Warsh nomination

US President Donald Trump said on Friday he would nominate Federal Reserve Governor and crypto supporter Kevin Warsh to succeed Jerome Powell as chairman of the US central bank, now paving the way for a high-stakes confirmation battle in the Senate.

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

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

It is optimistic for $BTC and crypto! 🔥 pic.twitter.com/fAWgqelYBf

– CEO (@Investments_CEO) January 30, 2026

The decision of the American president, announcement on Truth Social, confirmed earlier reports that Trump would move forward with the 55-year-old former Fed official and Morgan Stanley banker as his preferred candidate.

The chairman said he had known Warsh for a long time and had “no doubt” that he would be considered “one of the GREAT Fed chairs, perhaps the best.”

Prediction markets and Wall Street commentators were increasingly leaning Warsh as Trump’s likely pick, with odds uprising significantly before Friday’s announcement.

What Trump’s Fed Pick Means for Crypto

The appointment comes during a turbulent time for digital assets. During this decline, the price of Bitcoin fell suddenly this week, from a high of nearly $90,400 to a low of around $81,300.

BTC is down 6.5% over the past seven days to trade at $83,967 as of 11:26 p.m. EST, despite jumping 1.2% over the past 24 hours.

Historically, the Fed’s interest rate decisions have been important for cryptocurrencies because the assets tend to behave like so-called risky investments. When interest rates are high, safer yields, like those on U.S. Treasuries, become more attractive, drawing capital away from volatile assets like cryptocurrencies.

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

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

*TRUMP SAYS WARSH WILL CUT RATES WITHOUT PRESSURE FROM WHITE HOUSE
*TRUMP: WARSH WANTS TO CUT RATES

THE MARKET SAYS: NO, IT DOES NOT

– zero cover (@zerohedge) January 30, 2026

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

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

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