Kevin Warsh Leads Polymarket Odds to Become Next Fed Chair

Kevin Warsh, a former Federal Reserve governor, is now at the lead to become the next Fed Chair. Polymarket, a popular prediction market, shows a 62% chance that Warsh will be nominated. This shows the traders’ belief that President Trump may prefer him as Jerome Powell’s term ends in May 2026. 

🇺🇸 UPDATE: According to Polymarket, Kevin Warsh leads the market to be nominated as the next Fed Chair, with a 62% implied probability. pic.twitter.com/gs51vufZ9d

— Cointelegraph (@Cointelegraph) January 20, 2026

Who Is Kevin Warsh?

Warsh was a Fed governor from 2006 to 2011. He became known for supporting high interest rate hikes in difficult economic times. This means he usually favors controlling inflation even if it slows down growth a bit.

His approach is considered “hawkish” compared to more “dovish” policymakers who focus on keeping the economy growing. If Warsh becomes Fed Chair, he may push for stricter monetary policies. Which could make borrowing money more expensive in the short term.

Impact on Financial Markets

Warsh’s potential of getting nominated could affect both traditional and crypto markets. Historically, a hawkish Fed chair makes the U.S. dollar stronger because higher interest rates attract global investors. Stock markets might face some pressure if the costs of borrowing goes high, especially for companies with big loans.

For cryptos like Bitcoin, the effect could be mixed. Short-term volatility might increase, and some investors might sell off risky assets. But in the long run, higher rates could make crypto look good as a safety net against inflation.

Kevin Warsh’s Path to the Fed

Trump’s support plays an important role in Warsh’s chances too. Presidents usually pick Fed Chairs who match their economic needs, though the Fed is independent. Warsh’s nomination would show a change toward a more stricter approach on inflation.

How Warsh Could Impact Markets

Jerome Powell’s term ends in May 2026, and Warsh’s rise shows how much influence Fed leadership can have on the economy. Investors, traders and even the crypto enthusiasts will be watching very closely. Even the possibility of Warsh becoming Fed Chair is enough to make markets think ahead. Moreover, to also be ready for any possible changes in U.S. monetary policy.

Whether he gets the role or not, Warsh’s importance is already shaping expectations. For now, the world is watching, and the coming months will be important for both traditional finance and the crypto space.