Kevin Warsh, who was sworn in as the chairman of the United States Federal Reserve on Friday, will likely slash interest rates, despite the \u201cconsensus\u201d view that he will raise interest rates, according to author, Bitcoin investor and market analyst Lawrence Lepard.<\/p>\n
Lepard said<\/span><\/a> that comments from other US officials, including Kevin Hassett, the director of the White House National Economic Council, and Treasury Secretary Scott Bessent, support the likelihood of rate cuts in 2026. He added:\u00a0<\/p>\n \u201cWarsh will cut. He will use the AI productivity and trimmed inflation excuses and will claim that all the war inflation is transitory. Two data points from today’s Wall Street Journal support this view.\u201d\u00a0<\/p><\/blockquote>\n Source: <\/em>Lawrence Lepard<\/em><\/a><\/p>\n During Warsh\u2019s swearing-in ceremony<\/span><\/a> on Friday, US President Donald Trump said that the US would tackle its rising national debt through \u201cgrowth,\u201d signaling an expansion of the monetary supply and a lower interest rate regime.<\/p>\n Investors, traders, and analysts continue to debate about Warsh\u2019s impact on interest rate policy<\/span><\/a> and whether he will cut interest rates, which would boost risk-on asset prices, including Bitcoin and crypto.<\/p>\n Related: <\/strong><\/em>Odds against rate cuts high as new US Fed chair set for swearing in<\/strong><\/em><\/span><\/a><\/p>\n Nearly 68% of traders have priced in an interest rate hike of 25 basis points (BPS) or more by December 2026, according to the Chicago Mercantile Exchange (CME) Group\u2019s FedWatch tool<\/span><\/a>.<\/p>\n \u201cWe want to stop inflation, but we don’t want to stop greatness,\u201d Trump said<\/span><\/a> on Friday, which was met with skepticism from investors, economists and market analysts.<\/p>\n Kevin Warsh gives his acceptance speech at his swearing-in ceremony on Friday. Source: <\/em>The White House<\/em><\/a><\/p>\n In April, US lawmakers scrutinized Warsh\u2019s commitment<\/span><\/a> to preserving Federal Reserve independence, casting doubt on whether Warsh would resist pressure from the Executive Branch to loosen monetary policy.<\/p>\n Senator Elizabeth Warren said<\/span><\/a> that Warsh\u2019s appointment could create potential conflicts of interest, in which the Trump family\u2019s crypto businesses benefit from policies enacted by the new Fed chair.<\/p>\n Meanwhile, Bitcoin, crypto and stock investors could face several months of declining asset prices<\/span><\/a> following the Fed\u2019s leadership transition, as uncertainty over interest rate policy grows.\u00a0<\/p>\nTraders forecast rate hikes in 2026, as uncertainty mounts over new Fed chair <\/h2>\n
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