The Senate confirmed Kevin Warsh as the 17th chair of the Federal Reserve on Wednesday in a 54-45 vote, with Bitcoin (BTC) trading near $79,500 minutes after the result.
Warsh Confirmation Vote Details
Warsh will replace outgoing chair Jerome Powell, whose eight-year term expires Friday, CNN reported. The tally was the closest in modern Fed history, with only Pennsylvania Democrat John Fetterman crossing the aisle to support the nominee, according to CNBC.
Senate Majority Leader John Thune told colleagues during a floor speech that a Fed chair must understand both macro conditions and the daily concerns of working Americans, NPR noted.
The 56-year-old former Fed governor served on the board from 2006 to 2011, joining at age 35 as the youngest appointee in the institution's history.
His first FOMC meeting as chair is scheduled for Jun. 16-17. Powell intends to remain on the board as a governor, an unusual move for an outgoing chair.
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Crypto Market Reaction And Industry Stakes
Bitcoin barely moved after the vote, with prices hovering just under $80,000 on CoinGecko, Decrypt showed.
Warsh is the first incoming Fed chair to have held direct exposure to digital assets, including a stake in Bitcoin payments startup Flashnet and ties to Bitwise and stablecoin project Basis.
Senator Cynthia Lummis of Wyoming welcomed the result, saying American digital asset holders finally have a leader at the Fed ready to deliver for them.
Warsh has previously called Bitcoin "an important asset" and a "very good policeman for policy" at a Hoover Institution event, framing it as a signal of monetary credibility rather than a threat to the dollar.
But traders are not pricing in immediate relief. With April inflation jumping to a three-year high of 3.8%, Polymarket puts the odds of no rate cut at the June meeting at 97%.
Powell's Departure And Recent Fed Tensions
Powell's exit closes a chapter shaped by relentless public attacks from Donald Trump, who has demanded lower borrowing costs for more than a year.
The outgoing chair pledged to keep a low profile while remaining on the board, citing the need to protect the institution from political interference.
The handover also follows a Justice Department probe into Powell's congressional testimony on a Fed headquarters renovation. That investigation, led by DC US Attorney Jeanine Pirro, was dropped last month after Senator Thom Tillis initially blocked the Warsh nomination in protest.
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