🚀 The Fed Under Kevin Warsh: Aggressive Pivot or Hawkish Trap?
The crypto market is at a crossroads! Donald Trump has officially nominated Kevin Warsh to succeed Jerome Powell as Fed Chair this May. While many fear a "hawkish" shift, some economists are dropping bombshell predictions. 🌪️
📉 A 100 bps Cut on the Horizon?
Renowned economist Robin Brooks is going against the grain. While the consensus expects Warsh to tighten the belt, Brooks argues that Warsh will actually slash interest rates by 100 basis points before the November midterm elections!
📅 The "Pre-Election" Roadmap:
Brooks expects aggressive cuts across four key meetings—June, July, September, and October. This could bring the federal funds rate down from the current 3.5%–3.75% range to 2.5%–2.75%.
Why does this matter for Bitcoin? ₿
Liquidity Surge: Aggressive rate cuts are a massive "green light" for risk-on assets like BTC and ETH.The Trump Factor: Brooks suggests Warsh’s "biggest nightmare" is losing Trump’s favor (as Powell did), which might push him toward a more accommodative stance to support the economy.
⚠️ Market Reality Check:
The initial reaction wasn't pretty. Following the nomination news last Thursday, Bitcoin faced a sharp correction, sliding from $84,500 to sub-$75,000 levels over the weekend. Traders are still weighing Warsh’s reputation for fiscal discipline against the potential for political pressure.
What’s your take?
Will Warsh become the "Crypto King" by flooding the market with liquidity, or will his hawkish roots send BTC lower? Let’s discuss in the comments! 👇
#Fed #KevinWarsh #Bitcoin #CryptoNews #Trump
