Donald Trump's Fed Pick May Not Be The Hawk Markets Expect?But XRP Believers Bet He Won't Be Nominated Anyway

President Donald Trump claimed in an interview on Wednesday that Kevin Warsh can help deliver 15% GDP growth as Fed Chair, and expects him to cut rates dramatically.

Not everyone is so confident.

Evercore ISI analyst Krishna Guha describes Warsh as “50% Alan Greenspan, 50% Stan Druckenmiller“; a pragmatic conservative who distinguishes between supply-driven and demand-driven inflation.

While his nomination initially crushed Bitcoin (CRYPTO: BTC) and gold, Guha says Warsh is more flexible than markets expect.

That dovish read may explain why Judy Shelton nomination odds for Fed Chair have increased dramatically.

Shelton Odds Spike As Warsh Weakens

Polymarket odds for Trump’s Fed Chair nomination shifted this week. Warsh dropped from 98% to 94%, while Shelton climbed from 2% to 5%.

More than $100 million has traded on the Fed Chair market since the beginning of February, much of it on Judy Shelton; despite Trump already announcing Warsh as his pick on January 30th.

Traders are betting Trump may dump his presumptive nominee, fearing Warsh won’t deliver the aggressive cuts he’s demanding.

If Trump does decide to change his pick and nominate Shelton, these traders, who have been buying Shelton between 1 cent and 5 cents, stand to make millions.

In a sign of how much interest this market has generated, Polymarket launched a derivative market betting on whether Shelton’s odds will be over 5% by Friday.

Why Crypto Loves Shelton

Unlike Warsh, Shelton advocates for a gold standard and has questioned the Fed’s monopoly on currency.

Her sound money doctrine aligns with the deflationary ethos of Bitcoin and XRP (CRYPTO: XRP).

XRP holders theorize Shelton’s “New Bretton Woods” vision could position Ripple as the bridge currency in a reformed global financial system.

Benzinga previously reported crypto whales were betting on Shelton. The Guha analysis may explain why they’re doubling down.

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