Kevin Warsh has emerged as the main contender for the position of Chair of the Federal Reserve System (Fed) from President Donald Trump’s administration. According to sources, the White House is preparing his nomination for official announcement, which has sparked lively discussions among experts and impacted financial markets.
This is reported by Business • Media
Market Reaction and Prospects for the Nomination
On January 29, 2026, Donald Trump announced his intention to announce a candidate for the Fed Chair position soon. On the same day, Kevin Warsh visited the White House, reinforcing expectations of his appointment. At the time of this news preparation, the Trump administration refrained from making official comments regarding rumors about Warsh’s potential nomination.
Kevin Warsh already has experience serving on the Fed’s Board of Governors from 2006 to 2011 and has also advised Trump on economic policy. If his nomination is confirmed by the Senate, he will take over the position from Jerome Powell, whose term ends in May 2026. It is worth noting that Warsh was previously considered for this position in 2017, but the choice then fell to Powell.
Amid rumors of Warsh’s potential appointment, financial markets recorded declines in stock indices and increases in the yield on U.S. Treasury bonds. The U.S. dollar strengthened, while the value of precious metals and cryptocurrencies, including Bitcoin, continued to decline. The likelihood of Warsh being appointed as Fed Chair, according to Polymarket users, stands at 93%.
Additional Candidates and Political Challenges
In addition to Warsh, the list of candidates from President Trump’s administration includes National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and BlackRock CEO Rick Rieder. However, the confirmation process for the future Fed Chair may be complicated by political processes. In particular, Senator Thom Tillis has stated his intention to block all Fed appointments until the conclusion of a Justice Department investigation related to the reconstruction of the regulator’s headquarters. Senate Majority Leader John Thune noted that without Tillis’s support, the confirmation of any nominee would be unlikely.
Some financial analysts expect that Warsh’s arrival could negatively impact the digital asset market. This is especially true for Bitcoin, as the politician is known for his commitment to strict monetary discipline, raising real interest rates, and reducing liquidity.
“Markets generally view the resurgence of Warsh’s influence as a bearish factor for Bitcoin. His emphasis on monetary discipline, higher real interest rates, and reduced liquidity sees cryptocurrency not as a hedge against devaluation, but as a speculative excess,” said 10x Research founder Marcus Thielen.
It should be noted that on January 28, 2026, the Federal Open Market Committee of the Fed kept the key interest rate unchanged at 3.5%-3.75%.