Warsh will serve a four-year term as president and a 14-year term as governor of the FED.
The official revealed investments in cryptocurrencies in the order of 100 million dollars.
The president of the United States, Donald Trump, will preside this Friday, May 22, at the White House, at the swearing-in ceremony of Kevin Warsh as the new president of the Federal Reserve (FED).
The inauguration, scheduled for 11:00 am in Washington DC, coincides with the global celebration of Bitcoin Pizza Day, a symbolic mark for the arrival of the first leader of the US central bank with a profile openly favorable to Bitcoin technology.
Warsh, 56 years old, assumes leadership of the financial organization after having revealed investments of more than $100 million in digital assets, marking an unprecedented milestone in the relationship between the cryptocurrency ecosystem and traditional banking infrastructure.
The replacement at the central bank takes place after Warsh received the approval of the US Senate through a vote of 54 votes in favor and 45 against, as reported by CriptoNoticias.
Warsh will succeed Jerome Powell, who has held the presidency of the institution since 2018. The new president’s term will be four years and he will also have a 14-year term as governor of the FED.
Since Trump’s return to power in January 2025, the president maintained a constant public pressure campaign against Powell, demanding an aggressive reduction in interest rates in order to stimulate the North American nation’s economy, which finally precipitated the appointment of Warsh to lead monetary policy.
In nominating Warsh, who has an extensive career on Wall Street and served on the Federal Reserve board of governors during the 2008 global economic crisis under Ben Bernanke, Trump expressed confidence that the new official will apply more expansive monetary management.
However, it is difficult for the FED to immediately make interest rates more flexible, because the inflation in the United States is close to 4% year-on-year, driven by geopolitical tensions arising from the war with Iran and the logistical closure of the Strait of Hormuz.
Warsh, however, declared before the Senate his commitment to safeguarding the independence of the entity and assured that the executive branch He did not ask for commitments for specific rate cuts.
The institutional transition adds a high-impact regulatory edge for companies in the digital assets sector. This week, the White House issued an executive order formally instructing the Federal Reserve to review and relax digital asset platforms’ access to federal payment systems and reserve master accounts.
The investiture ceremony will break with the protocol tradition of the last four decades, in which the presidents of the US central bank took the oath at the main headquarters of the financial institution itself. and without the direct intervention of the head of state.
With the arrival of Warsh, who in 2017 had already been considered by Trump for the position before opting for Powell, the US government begins a period that could accelerate the mechanisms of coexistence between the traditional financial system and the digital asset market.