Kevin Warsh will be sworn in as Federal Reserve chair on Friday as markets pare back expectations for rate cuts — news with direct implications for Bitcoin and other crypto assets. The U.S. Senate confirmed Warsh in a 54-45 vote, replacing Jerome Powell as chair while Powell remains on the Fed’s Board of Governors. He takes the helm as pressure mounts on U.S. monetary policy: President Trump has pushed for lower borrowing costs, but market pricing has rapidly shifted toward the view that easing is unlikely anytime soon. What the market is pricing - Kalshi data cited in reporting show the probability of a rate cut before 2027 has plunged to about 38.2% from 96% in February. - CME’s FedWatch tool — which infers probabilities from 30-day Fed Funds futures — puts a 98.8% chance of no policy move through June and over 94% odds of no change through July. Why June matters for Warsh The Fed’s next FOMC meeting is June 16–17 and will include a Summary of Economic Projections (SEP). Reuters warns that Warsh will confront inflationary pressures, a divided Fed, and an early test of his policy stance at that meeting — a moment when he may need to clarify whether the Fed intends to hold rates higher for longer. Why this matters to crypto Higher-for-longer rates tighten dollar liquidity and weigh on risk assets, including Bitcoin. Treasury yields were already moving up ahead of Warsh’s first days in office: the 30-year was near 5.07% and the 10-year about 4.53%. That backdrop makes it harder for speculative assets to rally and raises the stakes on Fed signaling. Politics and crypto oversight Warsh’s confirmation has also reignited questions about Fed independence. At his Senate Banking Committee hearing, Sen. Elizabeth Warren warned that a Fed aligned with the White House could open the door to “granting special accounts to his family’s crypto company or bailouts to his friends on Wall Street if they get into trouble,” tying the leadership change to broader crypto-policy worries. Separately, lawmakers are pressing the White House to fill the Commodity Futures Trading Commission (CFTC). House Agriculture Committee leaders Glenn “GT” Thompson and Angie Craig sent a May 15 letter urging Trump to nominate a full bipartisan five-member panel, saying the CFTC faces urgent issues including market volatility, emerging technologies, and potential spot digital-commodity oversight under the CLARITY Act. Bottom line for crypto traders Kevin Warsh steps in at a decisive moment: markets expect rate stability, Treasury yields are elevated, and regulatory questions around crypto oversight remain front and center. Traders and projects should watch the June FOMC, Fed communications from Warsh, and any moves to refill the CFTC as key catalysts for crypto market direction. Read more AI-generated news on: undefined/news