Via theweek.com
Trump holds calls with Fed Chair Warsh amid push to reshape Fed
The president's ongoing dialogue with his hand-picked Fed chair raises questions about central bank independence, but crypto markets might not mind
President Trump has been regularly calling Federal Reserve Chair Kevin Warsh to discuss the economy and his broader outlook, continuing a pattern of presidential involvement with the central bank that has defined Trump’s approach to monetary policy since Warsh took the helm.
Warsh, who was sworn in on May 22, 2026, after Trump replaced Jerome Powell, has walked a tightrope familiar to anyone who’s watched a Fed chair try to maintain independence while a president leans in hard. Trump has publicly called Warsh a “fantastic” and “brilliant guy.”
The interest rate tug-of-war
Trump has consistently pushed for the lowest possible interest rates, framing cheap borrowing as essential to his pro-growth economic agenda. Warsh’s Fed, however, held rates steady during its June and July 2026 meetings, a decision that reportedly drew mixed reactions from the White House.
Trump has publicly insisted he supports Warsh’s independence in decision-making. In practice, those regular phone calls about “the economy and his outlook” suggest the president isn’t exactly keeping his preferences to himself.
Warsh, for his part, has been careful not to disclose specifics of these conversations to lawmakers.
The most crypto-friendly Fed chair in history
During his confirmation process, Warsh disclosed holdings in over 30 crypto projects, a level of personal exposure to digital assets that would have been unthinkable for any prior Fed nominee.
Warsh has described Bitcoin as an “important asset” that holds the potential to enforce market discipline.
What this means for investors
Warsh’s crypto-friendly posture could accelerate institutional adoption. When the person running the world’s most powerful central bank has skin in the game across dozens of digital asset projects, it sends a permission structure to banks, asset managers, and pension funds that have been sitting on the sidelines.
Warsh held steady in June and July despite presidential pressure. Whether he continues to do so if unemployment ticks up or growth slows, when the political case for cuts becomes even louder, will be the real test of how much those phone calls actually matter.