Kevin Warsh Emerges as Leading Candidate for Fed Chair

2 mins mins

Key Points:

Kevin Warsh leads Fed Chair race; Hassett’s odds drop.
Hassett likely to remain an economic advisor.
Market reactions show support for Warsh’s hawkish stance.

White House advisor Kevin Hassett is likely to stay in his current role, as President Trump expects to announce a new Federal Reserve Chair by the end of this month.

Kevin Warsh emerges as a leading candidate, with betting markets indicating a 60% probability of his selection, potentially affecting future monetary policies.

Kevin Warsh’s 60% Probability Leads Fed Chair Race

Kevin Warsh’s rise to prominence in the Federal Reserve Chair race follows White House economic advisor Hassett’s likely retention of his current position, as President Trump hinted at a preference for him to stay. Warsh’s past Fed governance and criticisms of monetary policy bolster his candidacy. Prediction markets now show Warsh’s probability at nearly 60%, leading against Hassett and others.

Hassett’s shifted focus to continue as a White House economic advisor affects the market’s anticipation of future fiscal policies. His previous tenure as head of the White House Council of Economic Advisers adds to his profile.

Bond yields jumped with Trump’s engagement in the selection process, boosting Warsh’s chances. Treasury Secretary Scott Bessent remains excluded, reinforcing the frontrunner status of Warsh. Krishna Guha from Evercore ISI affirms Warsh’s positioning: “It is not certain this is a definitive signal, but it does look as if the former Fed governor is for the first time the clear front-runner.”

Bitcoin’s Market Dynamics Amid Fed Leadership Speculation

Did you know? Kevin Warsh’s resignation in 2011 over bond-buying opposition marked his hawkish stance, similar to recent critiques, emphasizing potential policy shifts under his leadership.

Bitcoin (BTC) is trading at $92,710.57 with a market cap of $1.85 trillion, maintaining a 59.13% market dominance, as reported by CoinMarketCap. The digital currency’s trading volume in 24 hours stood at $29.12 billion, despite a 2.37% decline over the same period.

bitcoin-daily-chart-5723 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 01:38 UTC on January 19, 2026. *Source: CoinMarketCap*

Study from Coincu suggests that Warsh’s leadership may influence economic policies, potentially affecting market liquidity and financial regulations. His critical perspective on the Fed’s balance sheet could translate to concrete policy adjustments.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.