Kevin Warsh was officially inaugurated as the 17th chair of the Federal Reserve during a ceremony at the White House on Friday, coinciding with Bitcoin trading around $77,400. Supreme Court Justice Clarence Thomas administered the oath of office, marking the first time a Fed leader has been sworn in at the executive mansion since Alan Greenspan in 1987.
Warsh, aged 56, steps into the role previously held by Jerome Powell, who served as chair from 2018 and will continue as a Fed governor until 2028. The Senate confirmed Warsh on May 13 with a tight 54-45 vote, with only Democrat John Fetterman crossing party lines to support the nomination.
During his swearing-in address, Warsh emphasized the Fed’s dual mandate of price stability and maximum employment. He asserted that with wise and clear policy, inflation can be reduced, economic growth can strengthen, and real wages can increase. Warsh committed to leading a reform-focused Federal Reserve and vowed never to set interest rates at the behest of any elected official. President Trump, who had frequently criticized Powell’s rate decisions, expressed his desire for Warsh to operate with total independence.
Bitcoin remained steady near $77,400 on Friday, with market participants having largely anticipated the leadership change. All eyes are now on Warsh’s first Federal Open Market Committee meeting scheduled for June 17.
Warsh is recognized as the most crypto-savvy Fed chair to date. His financial disclosures previously indicated indirect holdings in DeFi lending, Layer 1 networks, and prediction markets, though he has since pledged to divest fully. However, his policy views could pose challenges for risk assets. Warsh has argued that the Fed’s balance sheet is excessively large and needs to be reduced, a move that might tighten liquidity conditions—historically a headwind for crypto rallies. Currently, markets assign near-zero probability to a rate cut in June, with some traders anticipating hikes in early 2027.
Warsh assumes leadership amid persistent inflation above the Fed’s 2% target, oil prices exceeding $100 per barrel, and consumer sentiment near historic lows. His initial policy decision will test whether the most crypto-friendly Fed chair can provide more than symbolic support in a macroeconomic environment that offers little room for monetary easing.