On January 30, 2026, reports emerged that President Donald Trump met with Kevin Warsh, a former Federal Reserve governor, to discuss the Fed Chair position, per Coincu. While no official nomination has been announced, the meeting has fueled speculation about a potential shift in monetary policy, with Warsh seen as a more hawkish figure than current Chair Jerome Powell, whose term ends in May 2026. White House spokesperson Kush Desai dismissed premature reports as “pointless speculation,” emphasizing that only an official announcement counts.
Kevin Warsh, a Federal Reserve governor from 2006 to 2011 and a Stanford professor, is known for his cautious stance on inflation and preference for tighter policy. Unlike Powell’s data-dependent approach, Warsh has criticized excessive stimulus, potentially signaling higher interest rates if appointed. This could strengthen the dollar but pressure risk assets like Bitcoin (BTC), currently at $82,717 with a $1.65T market cap, down 25.10% over 90 days, per CoinMarketCap. Ethereum (ETH) trades around $4,100, reflecting similar caution.
The news triggered a muted crypto market response, with BTC dipping to an intraday low of $112,709 before stabilizing. Analysts note that Warsh’s hawkish leanings could delay rate cuts, contrasting Trump’s growth-focused agenda. However, Trump’s pro-crypto stance, including the GENIUS Act for stablecoins, suggests balance. XRP and Solana remain volatile amid ETF delays, but clarity on Fed leadership could stabilize sentiment. Bitcoin’s $73.24B 24-hour volume indicates resilience despite macro uncertainty.
A Warren nomination could reshape Federal Reserve policy, prioritizing inflation control over aggressive easing. This aligns with historical transitions, like Powell succeeding Yellen in 2018, which sparked debates but had limited direct crypto impact then. Today, with crypto’s $3.8T market cap, Fed decisions carry greater weight. Investors should monitor Jackson Hole updates and FOMC minutes for clues. BTC support at $80,000 and resistance at $90,000 are key levels in this environment.
