Warsh will replace Jerome Powell as head of the US Federal Reserve. The Senate confirmed his appointment on May 14.
The US Senate has confirmed Kevin Warsh as Chairman of the Federal Reserve. He will replace Jerome Powell, whose term expires on May 15. The vote was 54 in favor, 45 against. Warsh will serve a four-year term.
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What Do Crypto Market Participants Expect?
The appointment is seen by the market as a potentially positive signal. Many analysts and KOLs expect Warsh to pursue a softer interest rate policy, which traditionally supports risk assets, including Bitcoin (BTC).
Senator Cynthia Lummis called it an “important step” for American business and digital asset holders. Expert Crypto Rover noted that Warsh might cut rates even amid high inflation. BitMine’s Tom Lee emphasized that the new chair is traditionally associated with a more flexible approach.
At the same time, Democrats, including Senator Elizabeth Warren, expressed concern and demanded greater transparency regarding his assets.
Read more: Bitcoin Price Could Reach $160K If BTC Catches Up to Stocks, VanEck Analyst Says
Who Is Kevin Warsh?
Warsh previously served on the Fed’s Board of Governors from 2006 to 2011. Before that, he held senior positions at Morgan Stanley.
He is known as a bitcoin supporter, calling the first cryptocurrency an “important asset” that helps assess the state of the economy.
Financial disclosures revealed his investments in dYdX, Lighter, Polychain Capital, and Dapper Labs, as well as holdings of Solana and Optimism tokens.
Read more: Bull-Bear Signal, Bitcoin ETF Inflows, Institutional Buys — What’s Driving BTC Price in May
How Did BTC’s Price React?
At the time of writing on May 14, bitcoin traded in the range between $79,500 and $81,000. Following the announcement of the vote, the price changed little and remained relatively stable.
At the time of publication, BTC▼$64,050.00 trades at approximately $79,700. Over the past 24 hours, bitcoin has fallen 1.5%, and over the week, it is down 2.2%.
The market is cautiously assessing the outlook, awaiting the first official statements from the new Fed chair.
Learn more: Top 5 Most Powerful Crypto Politicians Driving Global Cryptocurrency Policy and Regulation
