Powell OUT, Warsh IN as Fed Chairman SOON!

[Wind_FURY]

On the crypto angle, it's disclosed he's shown exposure to crypto names like Polymarket and a couple others, but I haven't seen anything confirming he personally holds BTC.

There are reports that he has invested in and held various crypto. But like his predecessors, he also pledged to divest from most of these investments after taking office as Fed Chair, as required by federal ethics rules to avoid conflicts of interest. So, whether he invests in bitcoin or not is no longer important.

He need to remain neutral in his role as Fed Chair to ensure his monetary policy decisions are not influenced by personal financial interests and to maintain the Fed independence.


https://finance.yahoo.com/markets/crypto/articles/fed-chair-nominee-kevin-warsh-205700461.html

  👍

Although, the countries that have increasing bureaucrats that have been educated about Bitcoin is definitely a step in the right direction, no? That absolutely shows that mainstream adoption will only GO UP as more and more of those Bitcoin-educated people take different government posts, especially high-ranking government positions.

I believe that during the early days of Bitcoin, NO ONE would have said that we'll see a pro-Bitcoin country.

[dezoel]

Him having crypto investments will not change a thing, I understand people have hope, but it is not going to matter believe me. USA is already a very pro-crypto nation, Trump was president and they did alright, then Biden took over and they still did great (ETF came out under Biden admin) and then Trump became president again and they did alright too.

So believe me, every president and even nominee likes bitcoin and crypto, nothing is changing, nothing is new. People are overreacting to it.

[Wind_FURY]

Him having crypto investments will not change a thing, I understand people have hope, but it is not going to matter believe me. USA is already a very pro-crypto nation, Trump was president and they did alright, then Biden took over and they still did great (ETF came out under Biden admin) and then Trump became president again and they did alright too.

So believe me, every president and even nominee likes bitcoin and crypto, nothing is changing, nothing is new. People are overreacting to it.

It WON'T, but the Federal Reserve will also NEVER change. If they see a situation to turn on the Money Printer - then the Money Printer will go BRRRRRR.

THAT will be good for Bitcoin and its growth in total market value.

[Satofan44]

He need to remain neutral in his role as Fed Chair to ensure his monetary policy decisions are not influenced by personal financial interests and to maintain the Fed independence.

Enough of this bullshit, most of Powell's decisions were extremely partisan. Had democrats won the elections with the retard Kamala he would have been lowering the interest rates the whole time since then. Stop believing that people in some positions are neutral just because you were told so, and because they are "supposed" to be that -- they never really are. It is as if you have not learned a single thing from Bitcoin, do I really need to quote what Andreas often used to say? Power corrupts, it does not make you neutral just because you were "supposed to be neutral".

Him having crypto investments will not change a thing, I understand people have hope, but it is not going to matter believe me. USA is already a very pro-crypto nation, Trump was president and they did alright, then Biden took over and they still did great (ETF came out under Biden admin) and then Trump became president again and they did alright too.

So believe me, every president and even nominee likes bitcoin and crypto, nothing is changing, nothing is new. People are overreacting to it.

So having an anti crypto FED Chairman is the same as having a pro crypto FED Chairman, that is your genius argument? How many times do you have to be proven wrong before you stop spewing bullshit like this? Nothing absolutely changed when the SEC got rid of the corrupt Gary Gensler, absolutely nothing at all and everything has been the same since that change. After all, what difference does it make if you are in favor or against something? Crypto is not yet anywhere near entrenched in the USA as it needs to be, just look how much opposition there is to the Clarity act. Therefore, you could claim that it is pro-crypto but only if you include that things are still early.

[Abiky]

Him having crypto investments will not change a thing, I understand people have hope, but it is not going to matter believe me. USA is already a very pro-crypto nation, Trump was president and they did alright, then Biden took over and they still did great (ETF came out under Biden admin) and then Trump became president again and they did alright too.

So believe me, every president and even nominee likes bitcoin and crypto, nothing is changing, nothing is new. People are overreacting to it.

Really? Because there are many Democrats who hate crypto. Elizabeth Warren is one of them. There are rumors Gavin Newsom will become the preferred Presidential candidate for the Democratic Party in the 2028 elections. I'm not sure he's pro-crypto. Those in the FED, especially in the Board of Governors, can be both Democratic and anti-crypto. But if they're all pro-crypto, then the industry would be on a good path.

Even though ETFs were approved under the Biden administration, there was strong opposition to crypto. Former SEC-chairman Gary Gensler pushed the industry a step backwards. A good thing the current administration has many crypto-friendly cabinet members. It could've been worse, right? We'll see what the new FED chairman will do during the remainder of his term.

[Emitdama]

There was an X post claiming that Kevin Warsh said, "Bitcoin is the new Gold", or something like that sentence. Bitcoin is probably going to resume the same sort of surges it had during the 2016 - 2017 and 2020 - 2021 Bull Cycles, no?

Powell did nothing bad about bitcoin, so I do not think that it will change. Like we do have ETF, we have a president of USA who made his own token, and scammed people lol, but basically for the past 5 years everything has been nice, and nothing went wrong and it was always pro-bitcoin. Just the fact that Blackrock has ETF is proof that we had a good bitcoin friendly period under Powell.

So while I am sure that Warsh could be also bitcoin friendly, that doesn't change the fact that we already had that, so we are not going to have a huge sudden change. If we moved from an anti-bitcoin person to a pro-bitcoin person then there could be big changes but since we did not have that, I doubt it will matter now.

[Satofan44]

Really? Because there are many Democrats who hate crypto. Elizabeth Warren is one of them. There are rumors Gavin Newsom will become the preferred Presidential candidate for the Democratic Party in the 2028 elections. I'm not sure he's pro-crypto. Those in the FED, especially in the Board of Governors, can be both Democratic and anti-crypto. But if they're all pro-crypto, then the industry would be on a good path.

However bad Republicans are, Democrats are 10 to 100 times worse. The fight is not yet over, that is why Bitcoin must establish itself deeply within the USA so that they have no chance to make the situation worse for Bitcoin during the times that they rule. The USA needs to see some drastic changes in the competencies of states or it should split apart, because it is not sustainable like this.

Powell did nothing bad about bitcoin, so I do not think that it will change. Like we do have ETF, we have a president of USA who made his own token, and scammed people lol, but basically for the past 5 years everything has been nice, and nothing went wrong and it was always pro-bitcoin. Just the fact that Blackrock has ETF is proof that we had a good bitcoin friendly period under Powell.

So while I am sure that Warsh could be also bitcoin friendly, that doesn't change the fact that we already had that, so we are not going to have a huge sudden change. If we moved from an anti-bitcoin person to a pro-bitcoin person then there could be big changes but since we did not have that, I doubt it will matter now.

Complete nonsense. Powell has absolutely nothing to do with the ETFs, therefore using the example of Blackrock's ETF as an argument for having a "Bitcoin friendly period" under Powell shows that you lack a complete understanding of who is responsible for what and why. The ETF approvals fall under the authority of the SEC, not the Federal Reserve -- and Powell has nothing to do with that. Even a change at the SEC from a anti-Bitcoin, extremely partisan and corrupt Gansler to a new person has brought tremendous benefits. If this corrupt person was not in charge, we would have had all of these things much earlier.

Now, the ETFs and the SEC have nothing to do with the FED and Powell. If you want to argue that the period under Powell was friendly to Bitcoin you have picked one of the worst examples you could pick. So before you make such claims it would be good for you to actually understand who has authority over what in the first place, you know the basics of the topic that you want to write about -- that will prevent misleading shitposts.
So before claiming there was a "Bitcoin-friendly period under Powell," it would help to understand who was actually responsible for the developments being cited.

[Abiky]

However bad Republicans are, Democrats are 10 to 100 times worse. The fight is not yet over, that is why Bitcoin must establish itself deeply within the USA so that they have no chance to make the situation worse for Bitcoin during the times that they rule. The USA needs to see some drastic changes in the competencies of states or it should split apart, because it is not sustainable like this.

Couldn't agree more with you, mate. Democrats are left-leaning, so they will oppose anything that brings privacy and/or freedom to the people. They're part of the deep state, globalist agenda. It's in their best interests to support the launch of a CBDC (US Digital Dollar) than giving their support to a decentralized crypto such as Bitcoin. Right now, the only ones in favor of crypto/Blockchain tech are Republicans. If a blue wave (Democrats) takes over, the growth of the crypto industry will stifle.

Thank God the US has a pro-crypto FED chairman. So much better than Powell, imo. Hopefully, Mr. Warsh does an outstanding job during the duration of his term.

[Floczy]

I remember when I trade forex and Powell was one man we where afraid of because his speech always makes the market so volatile that it takes out our positions lol
Now we are going to be afraid of some one new 

[M47AK16]

It WON'T, but the Federal Reserve will also NEVER change. If they see a situation to turn on the Money Printer - then the Money Printer will go BRRRRRR.

THAT will be good for Bitcoin and its growth in total market value.

This is the part I never truly understood. Printing more money is bad for the economy, and sometimes you have to because you have debt that you can't pay, and that is how growth is done. But if the debt is equal to growing, and you take debt so you can earn more later on, then if the economy gets worse while doing it ,then you did not achieve the reason for it?

The entire purpose of printing more money, is to pay the debt and what you need, and allow the people to have money again, which they do not have. That's definition of things going worse, not better.

[Satofan44]

However bad Republicans are, Democrats are 10 to 100 times worse. The fight is not yet over, that is why Bitcoin must establish itself deeply within the USA so that they have no chance to make the situation worse for Bitcoin during the times that they rule. The USA needs to see some drastic changes in the competencies of states or it should split apart, because it is not sustainable like this.

Couldn't agree more with you, mate. Democrats are left-leaning, so they will oppose anything that brings privacy and/or freedom to the people. They're part of the deep state, globalist agenda. It's in their best interests to support the launch of a CBDC (US Digital Dollar) than giving their support to a decentralized crypto such as Bitcoin. Right now, the only ones in favor of crypto/Blockchain tech are Republicans. If a blue wave (Democrats) takes over, the growth of the crypto industry will stifle.

Thank God the US has a pro-crypto FED chairman. So much better than Powell, imo. Hopefully, Mr. Warsh does an outstanding job during the duration of his term.

This is why these things are quite important despite the denials of some people that can't tell right from wrong. While a pro-crypto FED chairman may not bring anything to the table in terms of actual major changes (say a FED BTC reserve) due to a lack of votes for something like this, it is an important milestones. We need pro-crypto people everywhere, so that the institutions are occupied by people who are in favor of these things in a reasonable way (not radical or dangerous). Democrats are dangerous and they are extremely corrupt, just look at Nancy Pelosi. Bitcoin does require further integration in every aspect and with a generation change with Democrats it should be easier to navigate the waters, many are very old and have not contributed anything at all to the world like Elizabeth Warren. They exist solely to feed on taxpayer money and lobbying.

I remember when I trade forex and Powell was one man we where afraid of because his speech always makes the market so volatile that it takes out our positions lol
Now we are going to be afraid of some one new 

With the increased accessibility of tools for trading to the wider population, there come negatives. People are imagining that they are "traders", that is why we have so much extreme sentiment changes and reactions to hype. When you have a big number of users who have deluded themselves that they are traders because they made some green returns with luck, this is what happens.

[summonerrk]

So, in about 5 hours, the Federal Reserve system will roll out an interest rate decision under the chairmanship of the new Fed chairman. Probably, there can be no other way, since the markets pay attention to the Fed meeting, as well as to the speech of the head, most of all of the expected events, the Fed rate is such a trigger and some kind of summary of statistics.
Whether it's the labor force, whether it's inflation, whether it's other events, even looking at which the Fed itself decides on the rate. Most economists believe that the rate will not be raised at all until the end of 2026.
Although the betting odds say that there will be one increase. Previously, the markets expected a rate hike due to the war with Iran and the sharp rise in oil prices. But after the United States and Iran agreed to end the conflict, oil fell sharply and expectations dropped.

[imthegreat]

So, in about 5 hours, the Federal Reserve system will roll out an interest rate decision under the chairmanship of the new Fed chairman. Probably, there can be no other way, since the markets pay attention to the Fed meeting, as well as to the speech of the head, most of all of the expected events, the Fed rate is such a trigger and some kind of summary of statistics.
Whether it's the labor force, whether it's inflation, whether it's other events, even looking at which the Fed itself decides on the rate. Most economists believe that the rate will not be raised at all until the end of 2026.
Although the betting odds say that there will be one increase. Previously, the markets expected a rate hike due to the war with Iran and the sharp rise in oil prices. But after the United States and Iran agreed to end the conflict, oil fell sharply and expectations dropped.

And in general, Warsh is known for not liking to look into the future and make too many predictions. He wants less public speaking and prefers a reduction in the Fed's balance sheet. He is also skeptical about current inflation measurements. Markets are now expecting a soft position from him, so if he says that inflation is a serious problem, the markets may react strongly, for example, the dollar will rise, bonds will fall, respectively, risky assets may come under pressure on a rising dollar. The economy is now, if we look at it through the eyes of the Fed, the US labor market has become stronger.

[bubilas]

Goldman, Bank of America, and others are expecting a balanced tone. The Fed will eliminate overly soft language, but won't sharply toughen its rhetoric. Warsh is more likely to say something like, "We're looking at the data and are prepared to act in any direction." This is the new chairman's first meeting, so everyone will be closely monitoring his style and determining his priorities. Markets, as we know, are quite sensitive to any hints.
Moreover, the volatility war, a favorite pastime, may be ending—and thank goodness it is, with the new Fed chairman being scrutinized.

[Wind_FURY]

It WON'T, but the Federal Reserve will also NEVER change. If they see a situation to turn on the Money Printer - then the Money Printer will go BRRRRRR.

THAT will be good for Bitcoin and its growth in total market value.

This is the part I never truly understood. Printing more money is bad for the economy, and sometimes you have to because you have debt that you can't pay, and that is how growth is done. But if the debt is equal to growing, and you take debt so you can earn more later on, then if the economy gets worse while doing it ,then you did not achieve the reason for it?

The entire purpose of printing more money, is to pay the debt and what you need, and allow the people to have money again, which they do not have. That's definition of things going worse, not better.

Expanding the money supply is NOT entirely bad if the nation's productivity is also going up. But what the problem actually is, is when the Federal Reserve and other Central Banks around the globe use monetary policy as a way for a nation-state to avoid a recession.

Expanding the money supply in a such a situation when the nation's productivity is NOT going up will cause inflation to go up.

[summonerrk]

Goldman, Bank of America, and others are expecting a balanced tone. The Fed will eliminate overly soft language, but won't sharply toughen its rhetoric. Warsh is more likely to say something like, "We're looking at the data and are prepared to act in any direction." This is the new chairman's first meeting, so everyone will be closely monitoring his style and determining his priorities. Markets, as we know, are quite sensitive to any hints.
Moreover, the volatility war, a favorite pastime, may be ending—and thank goodness it is, with the new Fed chairman being scrutinized.

The market was reminded again who is in charge here.
While everyone was arguing about AI, SpaceX, robotaxi and new hype deals, the Fed calmly came out and said: guys, no one canceled the bets.
The new head of the Fed, Kevin Warsh, made it clear that if inflation does not cool down, the rate may rise by another 50 bps.
And the market was like, OK, we remembered. Nasdaq , S&P 500 decreased their values . The yield on 10-year treasuries has gone to 4.6%.
AI can be a real technological wave. Nvidia can keep making money. Data centers can be built.
So I wouldn't be looking at who says “AI” the loudest right now. I would see who would survive the 4.5%+ rate without fairy tales and presentations.
Bitcoin reacted only with increased volatility.

[bubilas]

Goldman, Bank of America, and others are expecting a balanced tone. The Fed will eliminate overly soft language, but won't sharply toughen its rhetoric. Warsh is more likely to say something like, "We're looking at the data and are prepared to act in any direction." This is the new chairman's first meeting, so everyone will be closely monitoring his style and determining his priorities. Markets, as we know, are quite sensitive to any hints.
Moreover, the volatility war, a favorite pastime, may be ending—and thank goodness it is, with the new Fed chairman being scrutinized.

The market was reminded again who is in charge here.
While everyone was arguing about AI, SpaceX, robotaxi and new hype deals, the Fed calmly came out and said: guys, no one canceled the bets.
The new head of the Fed, Kevin Warsh, made it clear that if inflation does not cool down, the rate may rise by another 50 bps.
And the market was like, OK, we remembered. Nasdaq , S&P 500 decreased their values . The yield on 10-year treasuries has gone to 4.6%.
AI can be a real technological wave. Nvidia can keep making money. Data centers can be built.
So I wouldn't be looking at who says “AI” the loudest right now. I would see who would survive the 4.5%+ rate without fairy tales and presentations.
Bitcoin reacted only with increased volatility.

The main conclusion after Warsh's debut:
He didn't give us any information; he raised the cost of forecasting.
And this appears to be not a side effect, but a design intent. The Fed unanimously maintained the 3.50-3.75% target, but the median of the points dropped from the previous decline to 3.8% by year-end, and the PCE forecast was raised to 3.6% from 2.7%.
Half of the committee is projecting a hike in 2026. Meanwhile, Warsh didn't offer his own point, cut his statement to 130 words, and eliminated forward guidance, adding five task forces and a balance sheet reduction plan.
Now capital will have to "navigate the instruments" in real time.

[Wind_FURY]

Goldman, Bank of America, and others are expecting a balanced tone. The Fed will eliminate overly soft language, but won't sharply toughen its rhetoric. Warsh is more likely to say something like, "We're looking at the data and are prepared to act in any direction." This is the new chairman's first meeting, so everyone will be closely monitoring his style and determining his priorities. Markets, as we know, are quite sensitive to any hints.
Moreover, the volatility war, a favorite pastime, may be ending—and thank goodness it is, with the new Fed chairman being scrutinized.

The market was reminded again who is in charge here.

While everyone was arguing about AI, SpaceX, robotaxi and new hype deals, the Fed calmly came out and said: guys, no one canceled the bets. The new head of the Fed, Kevin Warsh, made it clear that if inflation does not cool down, the rate may rise by another 50 bps.

And the market was like, OK, we remembered. Nasdaq , S&P 500 decreased their values . The yield on 10-year treasuries has gone to 4.6%.

AI can be a real technological wave. Nvidia can keep making money. Data centers can be built. So I wouldn't be looking at who says “AI” the loudest right now. I would see who would survive the 4.5%+ rate without fairy tales and presentations.

Bitcoin reacted only with increased volatility.

There will probably be LESS than a few if the Federal Reserve did something like what Paul Volcker did, and actually defeat inflation to start the journey towards long-term economic stability.

Volcker raised the Fed interest rate to as high as 15%.

  👀

[Satofan44]

And in general, Warsh is known for not liking to look into the future and make too many predictions. He wants less public speaking and prefers a reduction in the Fed's balance sheet. He is also skeptical about current inflation measurements. Markets are now expecting a soft position from him, so if he says that inflation is a serious problem, the markets may react strongly, for example, the dollar will rise, bonds will fall, respectively, risky assets may come under pressure on a rising dollar. The economy is now, if we look at it through the eyes of the Fed, the US labor market has become stronger.

And he is correct, the way that FED has been operating is just bureaucratic bullshit creating positions of power and influence for people who don't do any work except pretend to listen in some meetings and then cast a vote. Furthermore, the inflation measurements are completely corrupt for all the sides. When they want to provide you with lower numbers they adjust it in many ways in order to deliver what they want and can do, but some retards still believe that the institutions are "independent" meanwhile they almost always act in biased partisan ways.

The main conclusion after Warsh's debut:
He didn't give us any information; he raised the cost of forecasting.
And this appears to be not a side effect, but a design intent. The Fed unanimously maintained the 3.50-3.75% target, but the median of the points dropped from the previous decline to 3.8% by year-end, and the PCE forecast was raised to 3.6% from 2.7%.
Half of the committee is projecting a hike in 2026. Meanwhile, Warsh didn't offer his own point, cut his statement to 130 words, and eliminated forward guidance, adding five task forces and a balance sheet reduction plan.
Now capital will have to "navigate the instruments" in real time.

It was good. If the shit with Iran didn't happen then we would have gotten many rate cuts this year, but that has negatively impacted the whole world and a more conservative approach was needed. If this war can be fully stopped, then we should see things get better after some time but if it resumes then the world will be in trouble. Anyway it is much worse in every other country and less transparent and more corrupt, Russia, China and so forth. 

There will probably be LESS than a few if the Federal Reserve did something like what Paul Volcker did, and actually defeat inflation to start the journey towards long-term economic stability.

Volcker raised the Fed interest rate to as high as 15%.

  👀

If you have to go as high as 15% that is a sign that someone or a group of someones has fucked up the economy really bad, so this is not a sign of bravery but a sign of last-resort measures to get chaotic things under control. If it has to go that far, the country is fucked up as we have seen in recent years in various other places.

[Abiky]

The market was reminded again who is in charge here.
While everyone was arguing about AI, SpaceX, robotaxi and new hype deals, the Fed calmly came out and said: guys, no one canceled the bets.
The new head of the Fed, Kevin Warsh, made it clear that if inflation does not cool down, the rate may rise by another 50 bps.
And the market was like, OK, we remembered. Nasdaq , S&P 500 decreased their values . The yield on 10-year treasuries has gone to 4.6%.
AI can be a real technological wave. Nvidia can keep making money. Data centers can be built.
So I wouldn't be looking at who says “AI” the loudest right now. I would see who would survive the 4.5%+ rate without fairy tales and presentations.
Bitcoin reacted only with increased volatility.

Companies can hype all they want, but central banks have the final say on the state of the economy. This directly affects the stock market. So if a central bank like the FED decides to cut rates, the market will boom. The inverse happens if rates are raised. Considering that the new FED chairman is hawkish, I'm afraid both crypto and stocks will continue to decline within the short-term. Even precious metals such as Gold and Silver are suffering. I'm not sure about bonds, though.

Every decision the FED makes affects us one way or another. Even if Kevin Warsh wants to satisfy Trump by cutting rates, there will be other board members that will oppose him. Former chairman Jerome Powell is still on the Board of Governors. Since inflation is high, the FED should either leave rates unchanged or raise them a bit. We'll see what happens...