Kevin Warsh Set to Take Oath as Fed Chair; Markets Dial Back Rate-Cut Bets

CoinDesk reports that Kevin Warsh is scheduled to be sworn in as Federal Reserve chair this Friday, replacing Jerome Powell. With the leadership change, markets have sharply reduced expectations for near-term rate cuts, a backdrop that could keep U.S. dollar liquidity tight and prolong pressure on risk assets, including cryptocurrencies. Warsh was confirmed by the Senate in a 54"to"45 vote. Powell, after stepping down as chair, will remain on the Federal Reserve Board. Warsh takes office as policy divisions intensify: the White House continues to push for lower borrowing costs, while market pricing points to no immediate pivot toward easing. Kalshi data cited in the report show the market now assigns a 38.2% probability to rate cuts before 2027, down from 96% in February. CME FedWatch indicates a 98.8% probability that rates will be left unchanged at the June meeting, and more than a 94% probability of no change in July. The next FOMC meeting is set for June 16""17 and will include the release of the Summary of Economic Projections. It will be Warsh's first major policy moment in the role, and investors are expected to scrutinize the meeting for signals on inflation, growth, and the rate path. Higher rates have continued to curb risk appetite. Elevated borrowing costs tend to keep dollar funding expensive and limit liquidity improvements, a dynamic that often weighs on Bitcoin and other crypto assets by reducing demand for highly volatile exposures. Ahead of Warsh's start date, U.S. Treasury yields were already high, with the 30-year near 5.07% and the 10-year around 4.53%, levels the report said could sustain near-term valuation pressure for crypto. Beyond rates, Warsh's appointment has renewed debate around Fed independence. Senator Elizabeth Warren warned during a Senate Banking Committee hearing that increased Trump influence over the central bank could spark broader controversy across financial and cryptocurrency policy. Regulatory staffing is also in focus at the U.S. Commodity Futures Trading Commission, where vacancies remain. House Agriculture Committee Chairman Glenn Thompson and senior member Angie Craig wrote to Trump on May 15 urging prompt nominations to restore a full bipartisan panel. The letter cited ongoing market volatility, rapid technological change, and the possibility that the CFTC's responsibilities could expand to cover spot digital commodities under the CLARITY Act. Until new appointments are made, the report said, enforcement capacity and the pace of policy development remain key variables for the crypto industry.