Donald Trump is not your typical US President and therefore we can expect all kinds of anomalies from him. Accepting Trump as a normal person can drown you in your strategy that he has established according to his rules. So, considering the current decline, what kind of madness could Trump do?
Trump: Tell Them Warsh
Currently, stocks crypto- And commodity decline It is triggered by Warsh’s opposition to QE. Trump is aware of this. trump of stocks He loves to brag about his rise and his family has made billions of dollars from crypto. In other words, although Trump and his circle do not care about short-term declines in risk markets, they tend to trigger increases. We have seen declines where Trump’s son gave advice “This is the right time to buy Bitcoin”.
We know that Trump is not a normal US President, right? So what do we have? The decline is related to the election of Warsh, the Fed Chairman candidate announced by Trump on Friday. From where? Because Warsh had mentioned that he was “opposed to monetary expansion” in his previous thesis studies, economic research and policy strategy announcements. Look, it’s not against interest rate cuts, it’s against QE. You know, after QT barely ended in December, we are still talking about the expansion environment that Powell and his team did not technically initiate and that will blow the risk markets.
In the current circumstances, Trump said to Warsh in the background, “your QE “Your opposition is causing the stocks to drop, and I’m uncomfortable with it. Make a statement about it and relax the markets.” (In the second part, we will talk about why it is abnormal for him to say this. The important thing here is that Trump is so abnormal that he can even do this.)
Or trump He can speak on behalf of Warsh, as he did the other day, and say, “He is not against QE, I talked to him, and he is positive about monetary expansion.” This is a rare opportunity for Trump, who is trying to gain advantage by deliberately weakening the dollar. It will also increase risk markets. Two birds with one stone for Trump.
We will follow in the coming hours and days whether Trump will commit such madness. In his first year, Trump gave many of us the image of being “someone who can do this.” And if he wants to move the markets (which he says he loves) he can do it.
Would Warsh Do This?
If one of the above two paths is followed, Democrats in the Senate will not confirm Warsh’s presidency. He probably won’t approve because they are already presenting the dismissal of the lawsuit filed against Powell for not lowering interest rates for the independence of the Fed as the main condition of the Warsh vote.
Alright Warsh’s Is it against the practices for him to come out and say “I’m not against QE, I’ll do whatever is necessary”? Although there is no formal “law,” there is a very strong ethical tradition and precedent for Fed presidential candidates. A nominee generally refrains from making broad policy statements to the public until he or she is confirmed by the Senate. The main reason for this is to avoid risking the confirmation process in the Senate and to respect the legislative body.
Any statement made by the Fed chairman candidate could create shock waves in the markets. That’s why candidates usually express their views only in formal hearings before the Senate.
But Kevin Warsh wrote his thoughts to the WSJ in November 2025, before he was even nominated. He was a candidate in those days and he is a candidate today, but Trump can still do something he wouldn’t do under normal circumstances if he wants. Because under normal circumstances, one should not talk too much while being a candidate.
