Kevin Warsh was officially sworn in as the new chair of the “Fed” on Friday, marking the first time since the late 1980s that a Federal Reserve chief took the oath at the White House.
The ceremony was led by Supreme Court Justice Clarence Thomas, with Warsh replacing Jerome Powell after his long tenure at the central bank. The Senate approved Warsh earlier this month in a close 54-45 vote.
Bitcoin hovered around $77,450 following the announcement, showing little reaction as traders had already expected the transition ahead of the Fed’s next policy meeting in June.
Markets Focus on Warsh’s Next Move
Speaking after the ceremony, Warsh said the Fed’s priority remains controlling inflation while supporting employment.
“Our mandate at the Fed is to promote price stability and maximum employment.”
He also promised to protect the Fed’s independence and avoid political influence when making interest rate decisions.
While Warsh is seen as more familiar with digital assets than previous Fed chairs, investors are still trying to understand how aggressive he could be on monetary policy. He has previously argued that the Fed’s balance sheet became too large and should be reduced, a move that could tighten market liquidity.
Why Traders Are Paying Attention
Warsh steps into the role at a difficult moment for the Fed, with inflation still above target, oil prices remaining elevated, and consumer confidence under pressure.
Markets currently expect the Fed to keep rates unchanged in June, with attention now shifting toward whether Warsh signals a tougher stance on inflation or opens the door for future easing later this year.
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