Trump’s nominee for Fed chair: won’t be a White House puppet—crypto assets will become the new financial normal

Kevin Warsh, a nominee for the chair of the Federal Reserve (Fed) backed by Trump, recently appeared at a confirmation hearing before the Senate Banking Committee and shared his views on issues such as monetary policy, the Fed’s independence, and cryptocurrencies. Facing outside doubts that he could give in to U.S. President Trump’s pressure to cut interest rates, Warsh pledged the Fed’s independence and emphasized that he would never become a White House “puppet.” Under the combined impact of news from the hearing and shifts in international geopolitical conditions, all three major U.S. stock indexes fell across the board.

Sen. John Kennedy Grills Fed Nominee Kevin Warsh: “Will You Be a Human Sock Puppet?”

Warsh pushed back, pledging independence from the White House and signaling he would act autonomously if confirmed to lead the Federal Reserve#WashingtonEye pic.twitter.com/EC3NxxkkSt

— Washington Eye (@washington_EY) April 21, 2026

Trump-backed chair nominee: Warsh emphasizes the Fed’s independence

According to a CNBC report, at a hearing of the Senate Banking Committee, 56-year-old former Fed governor Warsh faced scrutiny from all sides. The issues included his stance on monetary policy, his huge and complicated personal financial situation, and his ties to the White House.

In response to Trump’s repeated public calls for interest rate cuts, Warsh said clearly that he has never promised the president any specific interest-rate decisions, and he would not agree to do so. When asked whether he would become the president’s “puppet,” Warsh strongly rejected it: “Absolutely not.” However, he also added that when actions by a central bank are questioned by elected leaders, it does not mean that the Fed’s independence is therefore threatened.

Trump continues to pressure for rate cuts; the current chair Powell faces a judicial investigation

Maintaining the Fed’s independence is a core issue drawing close market attention during Trump’s second term. In an interview with CNBC on Tuesday, Trump said plainly that if Warsh took office and did not immediately cut rates, he would feel “disappointed.”

In fact, Trump has long tried to pressure the central bank to quickly lower interest rates. The current Fed chair, Jerome Powell, has faced a criminal investigation by the U.S. Department of Justice (DOJ) in recent months for refusing to compromise. In response, Trump said on the program that he does not intend to pressure the DOJ to end the investigation.

Could Kevin Warsh’s easing policy boost Bitcoin?

On digital assets, Warsh pointed out that cryptocurrencies “have already become part of the structure of our financial services industry.” Matt Mena, a senior crypto research strategist at asset manager 21shares, analyzed that Warsh has invested in dozens of cryptocurrencies and decentralized finance (DeFi) projects, and even viewed Bitcoin as “the new gold for people under 40.”

Mena noted that although Warsh enjoys a reputation for fiscal discipline, he has long criticized central banks for relying too heavily on lagging data, which keeps interest rates at unnecessarily high levels and triggers market volatility. Looking ahead to the second half of 2026, Mena believes that if Warsh takes office, he may adopt a more proactive easing policy, which could help drive the prices of risk assets such as Bitcoin, allowing BTC to challenge the $100,000 level again.

Ceasefire talks in the Middle East take a twist; all three major U.S. indexes end lower

While Wall Street digested the contents of the Warsh hearing, it was also hit by rising geopolitical risks. Reports said the U.S. has paused recent peace talks, and Vice President Vance has also put off plans to visit Pakistan. In addition, the president further stated that the U.S. does not plan to extend the interim ceasefire agreement with Iran, which is expected to expire on Wednesday evening.

Affected by multiple pieces of news, U.S. stocks fell further after the midday session. At the close, the Dow Jones Industrial Average dropped 0.6%, and both the S&P 500 index and the Nasdaq Composite index also fell 0.6%.

This article—Trump’s Nominated Fed Chair Candidate: Not a White House Puppet; Crypto Assets Will Become the New Normal—first appeared on Chain News ABMedia.