Powell to Warsh Transition Leaves Markets in Limbo, Crypto Faces Volatility Threat

JAKARTA, KOMPAS.com - The leadership change at the Federal Reserve from Jerome Powell to Kevin Warsh is capturing the attention of markets. Rather than immediately sparking bullish or bearish sentiment, the transition of the top figure at the United States’ central bank is instead adding to market uncertainty, particularly for cryptocurrencies that are sensitive to liquidity and interest rates. Tokocrypto CEO Calvin Kizana assesses that the switch from Powell to Warsh cannot be simply read as a positive or negative signal for the crypto market. Warsh will indeed replace Powell as Fed Chair after passing the committee vote with a score of 13-11. Powell will continue to serve as a Fed Governor after his term as chair ends on 15 May. Thus, he will no longer be the main figure, but he will still have a vote in monetary policy decision-making until his term as governor ends in January 2028. “The situation becomes more complex because Powell will continue to serve as a Fed Governor after his term as Chair ends on 15 May (2026),” Calvin said when contacted by Kompas.com on Friday (1/5/2026). “This means Powell is no longer the face of the Fed, but he still has a vote in monetary policy decision-making until his term as governor ends in January 2028,” he explained. This structure is crucial because interest rate decisions are not determined by the chair alone, but through a collective mechanism in the Federal Open Market Committee (FOMC), the Fed’s main committee, as well as the Board of Governors. Thus, even though Warsh serves as chair, the direction of policy cannot change drastically in a short time. From a political perspective, the continuity of Powell’s position on the Board of Governors is seen to have significant implications. As long as Powell remains in office, US President Donald Trump cannot immediately appoint a replacement for that seat. If Powell were to resign completely, Trump would have the opportunity to add a new figure aligned with government policy, thereby strengthening political influence within the Fed. However, with Powell staying on, the composition of the Board of Governors remains relatively locked until 2028, unless other vacancies occur.