Trump Picks Next Fed Chair: On Friday last week, Trump appointed Kevin Warsh as the next chair of the U.S. Federal Reserve (Fed), ending months of speculation. Warsh is a former Fed governor, a Wall Street veteran, and has previously advised Trump on economic policy.
Markets appear more comfortable with Warsh than they were with the broader set of possibilities. Trump has repeatedly urged the current Fed chair, Jerome Powell, to cut rates, raising concerns that the White House could try to undermine the Fed’s independence. Investors had worried Trump might pick someone who would effectively act as an extension of his agenda inside the central bank. Warsh’s experience, and his history of not generally arguing for lower rates, seems to have reduced those fears, even though he has previously called for regime change at the Fed and did argue for lower interest rates in 2025.
Warsh is set to take over when Powell’s term ends in May. So far, the announcement has had a meaningful impact across markets, most notably in precious metals such as gold and silver, as reflected in the first chart.
UK Nears Final Crypto Rulebook: While the Clarity Act, which is expected to regulate the crypto market in the U.S., has recently been postponed, the UK continues to move steadily toward a more complete framework. In late January, the UK Financial Conduct Authority (FCA) released a final consultation on its crypto regime, including 10 regulatory proposals. The process now moves to a public hearing, with a final framework expected in March and full implementation targeted for October 2027. Last week, the UK House of Lords also requested public input specifically on stablecoins, including how the UK can participate in their growth and what risks may be involved.
Overall, the UK’s progress is another indication that crypto is being brought further into formal regulatory structures. In parallel, the market is still waiting for clarity on the U.S. Clarity Act.
Fidelity to Launch Its Own Stablecoin: Fidelity, the world’s third-largest asset manager, said last week that it is close to launching its own dollar-denominated stablecoin. The token will be called Fidelity Digital Dollar (FIDD) and is expected to be available on the Ethereum blockchain within the next few weeks. Additional blockchains could follow later. The reserves behind the stablecoin will consist of cash, cash equivalents, and short-term U.S. Treasuries, in line with the requirements of the U.S. Genius Act . The latter is a U.S. law passed last year focused specifically on rules for stablecoins. Fidelity said the stablecoin will be available on its own platforms and on international crypto exchanges.
Fidelity has been involved in crypto for years, so the move itself isn’t entirely surprising, even if it’s still a constructive development. What stands out more is the timeline: the launch appears close rather than years away.
