Trump prepares to nominate Kevin Warsh as head of the Fed

The debate “Can Trump eject Jerome Powell from his golden seat?” » is no longer relevant. The current President of the United States, virtuoso of political provocation, is preparing to take action. Friday morning, he will announce the name of who will take the helm of the Fed. The favorite candidate? Kevin Warsh, a respected former governor, with a profile that is both orthodox and unexpected. The man who could well give a new face to the American central bank.

Kevin Warsh, the banker between monetary tradition and crypto curiosity

The rumors were confirmed after the withdrawal of Kevin Hassett: Donald Trump met Kevin Warsh on Thursday at the White House, and the exchange would have attracted the president. The former Fed governor (2006–2011) now appears as the almost designated successor of Jerome Powell.

On the Polymarket and Kalshi prediction markets, his nomination probability jumped from 30% to over 90%.

Warsh distinguished himself by a rare position: conservative on rates, but open to financial modernity. In July, in an interview with the Hoover Institution, he said:

Bitcoin doesn't bother me. I view it as an important asset that can help decision-makers know when they are doing things right or wrong. I think he can often be a very good policeman for politics.

By expressing himself in this way, Warsh subscribes to a unique line of thought: he considers bitcoin (BTC) as a tool for the moral evaluation of budgetary policies, not as a threat to the national currency. A vision that intrigues the markets and seduces some investors.

Trump versus Powell: the Fed, a new space for political combat

The quarrel between Trump and Jerome Powell is not new. For months, the President of the USA has been attacking the Fed, accused of slowing down growth through its excessive caution. Thursday again, he wrote on his social network:

We should have a significantly lower rate now that even this idiot admits that inflation is no longer a problem or a threat… He is causing America to lose hundreds of billions of dollars a year in totally unnecessary and unjustified interest expenses.

This exit illustrates the divide between monetary policy and executive power. Trump demands rates of 1%, convinced that the economy must be boosted before the elections.

Powell, for his part, pleads for a balanced approach, despite a tense environment: a Justice Department investigation looms over the Fed, linked to the management of a $2.5 billion real estate project.

In this climate, Warsh appears to be the compromise candidate: firm on rigor, but politically malleable.

His arrival embodies an implicit promise: that of a more flexible, more presidential Fed. And more in line with Trump's economic vision.

Bitcoin, nervous markets and a high-risk institutional shift

If Trump announces Warsh this Friday, the timing is strategic. The economy is slowing, markets are hesitant, and the Fed's credibility is wavering.

Warsh, respected on Wall Street, represents a synthesis of expertise and political loyalty. Its perception of bitcoin as a thermometer of confidence appeals to younger investors.

But this appointment raises a fear: that of a central bank under direct influence of power. Powell could also stay on the board of governors until 2028, preventing Trump from having a majority. An unprecedented cohabitation in recent history.

Traders watch for signals. The dollar has already strengthened, long-term rates have climbed, and hedge funds are repositioning before the official announcement.

Benchmarks to watch out for

• Warsh served at the Fed from 2006 to 2011;
• The appointment could be made official Friday morning;
• Polymarket and Kalshi markets give more than 93% probability;
• Powell keeps a term as governor until 2028;
• The bitcoin (BTC) price is currently trading around $82,554.

The appointment of Kevin Warsh is expected to be a turning point. The markets, already feverish, are hoping for clarification. Gold continues its surge, a symbol of prudence. Bitcoin remains suspended on the news. As long as it remains below $83,000, calm prevails. But several analysts fear a brutal correction, up to $70,000, if the Fed strengthens its monetary tone in the coming weeks.