#KevinWarshLeadsFederalReserve

Kevin Warsh was sworn in as the 17th Chair of the Federal Reserve today at the White House - the first time a Fed chair has taken the oath there in nearly 40 years. d815

What’s changing under Warsh:

Inflation-first stance

Warsh has been blunt: “Inflation is the Fed’s choice”. He argues the Fed lost its way with bond-buying after 2011 and plans to refocus on price stability.

Smaller balance sheet

He wants to shrink the Fed’s ∼$6.7T balance sheet, calling it “unhelpful” and a reason the Fed gets dragged into politics. Goal: let markets function with less Fed interference.

Independence vs. politics

Trump picked Warsh expecting rate cuts, but Warsh says he’ll decide rates “on the merits” and hasn’t made any deal. Markets are now pricing an 84% chance of a hike, not a cut, as his first move. 3e35b77c157443cbba4dd815

Why crypto traders are watching:

Warsh’s push for a leaner Fed + tighter monetary stance could mean higher bond yields and less liquidity. That usually pressures risk assets short-term, but a credible inflation fighter could restore confidence long-term. ba4d

The first FOMC meeting under Warsh is June 16-17. 3e35

Do you think Warsh’s “Fed must stay in its lane” approach will be bullish or bearish for BTC?