Kevin Warsh was officially sworn in as the new chair of the Federal Reserve on Friday during a White House ceremony, becoming the first Fed leader to take the oath at the White House since Alan Greenspan in 1987.
The oath was administered by Clarence Thomas.
Warsh, 56, replaces Jerome Powell, who had served as Fed chair since 2018 and will remain on the Federal Reserve Board as a governor until 2028.
The Senate confirmed Warsh earlier this month in a close 54-45 vote. Senator John Fetterman was the only Democrat to support the nomination.
After taking the oath, Warsh said the Federal Reserve’s main mission remains controlling inflation and supporting employment. He promised to lead a “reform-oriented Federal Reserve” and stressed that he would make decisions independently without political pressure.
President Donald Trump, who had often criticized Powell’s interest rate policies, said he wants Warsh to remain “totally independent.”
Meanwhile, Bitcoin traded near $77,400 during Friday’s session, showing little reaction as markets had already expected the leadership change for weeks.
Crypto investors are paying close attention to Warsh because he is widely viewed as one of the most crypto-aware Fed chairs in history. Financial disclosures previously showed indirect exposure to DeFi projects, Layer-1 blockchain networks, and prediction markets before he agreed to fully divest those holdings.
Still, analysts believe his economic policies could create challenges for risk assets like crypto. Warsh has repeatedly argued that the Federal Reserve’s balance sheet has grown too large and should be reduced, a move that could tighten market liquidity.
Historically, easier liquidity conditions have helped fuel major crypto rallies, so traders are now closely watching how Warsh handles future monetary policy decisions.
Markets currently expect almost no chance of a June interest rate cut, while some investors are even pricing in possible rate hikes in early 2027.
Warsh takes over at a difficult time for the US economy, with inflation still above the Fed’s 2% target, oil prices staying above $100 per barrel, and consumer confidence remaining weak.
His first Federal Open Market Committee meeting is scheduled for June 17, and many investors see it as an important test of how the new Fed chair plans to balance inflation control, economic growth, and financial market stability.
