Kevin Warsh Takes Office as Fed Chair: Interest Rate Cuts Unlikely
Kevin Warsh is expected to be sworn in as Chair of the U.S. Federal Reserve on Friday. This appointment is drawing significant interest against the backdrop of Donald Trump's demands for interest rate cuts. The U.S. Senate confirmed Warsh to replace Jerome Powell, but market analysts remain skeptical about near-term rate changes. This is reported by Cointelegraph.com reports .
Prediction markets like Kalshi estimate the probability of interest rate cuts by 2027 at 38.2%, a sharp decline from the 96% figure in February. According to CME FedWatch data, there is a 98.8% probability that rates will remain between 3.50% and 3.75% through the end of June.
Senator Elizabeth Warren emphasized that Warsh's appointment raises concerns regarding Fed policy, particularly regarding impartiality toward Trump's associates and crypto companies. Warsh has disclosed investments in AI and crypto companies within his asset portfolio.
Meanwhile, lawmakers are demanding that Trump fully appoint CFTC commissioners. This regulatory body is attempting to strengthen oversight of prediction platforms like Kalshi and Polymarket, especially as new legislation regarding the digital asset market is being discussed.
