Key Takeaways
- • Stanley Druckenmiller, hedge fund billionaire and former Quantum Fund partner, told the Financial Times he is highly supportive of President Trump's pick of Kevin Warsh to chair the Federal Reserve.
- • Druckenmiller said the characterization of Warsh as always hawkish is incorrect, stating "I've seen him go both ways."
- • Warsh has been a partner at Druckenmiller's family office, Duquesne Capital Management, since 2011, and the two reportedly speak or text more than a dozen times per day.
- • Druckenmiller also described a "partnership" between Warsh and Treasury Secretary Scott Bessent as ideal, noting that an accord between the Treasury secretary and Fed chair is desirable.
- • Risk markets, including crypto, fell sharply after a leak of the Warsh selection the prior evening, with bitcoin dropping to around $81,000.
Summary
President Trump's selection of Kevin Warsh to replace Jerome Powell as Federal Reserve chair was initially read by markets as the most hawkish choice among the four reported finalists. Following a leak the previous night, risk assets including crypto sold off sharply, with bitcoin falling back to $81,000, according to CoinDesk.
In comments to the Financial Times on Friday, Stanley Druckenmiller pushed back on that characterization. Druckenmiller, who made his fortune alongside George Soros at Quantum Fund and later through his family office, Duquesne Capital Management, said the branding of Warsh as always hawkish "is not correct," adding, "I've seen him go both ways." Warsh has been a partner at Duquesne since 2011. The two have previously been described as close to a father-son relationship, speaking or texting more than a dozen times per day.
Druckenmiller also praised Warsh's qualifications, stating, "I could not think of a single other individual on the planet better equipped." He expressed enthusiasm for the working relationship between Warsh and Treasury Secretary Scott Bessent, whom Druckenmiller hired at Quantum Fund more than 30 years ago. "Having an accord between the Treasury secretary and Fed chair is ideal," Druckenmiller said. The FT, in a profile published roughly a year earlier, characterized the pair as embodying Druckenmiller's approach to interpreting markets and economic policy.
The comments come from a source with a close personal and professional relationship to the nominee, and should be weighed accordingly.
In comments to the Financial Times on Friday, Stanley Druckenmiller pushed back on that characterization. Druckenmiller, who made his fortune alongside George Soros at Quantum Fund and later through his family office, Duquesne Capital Management, said the branding of Warsh as always hawkish "is not correct," adding, "I've seen him go both ways." Warsh has been a partner at Duquesne since 2011. The two have previously been described as close to a father-son relationship, speaking or texting more than a dozen times per day.
Druckenmiller also praised Warsh's qualifications, stating, "I could not think of a single other individual on the planet better equipped." He expressed enthusiasm for the working relationship between Warsh and Treasury Secretary Scott Bessent, whom Druckenmiller hired at Quantum Fund more than 30 years ago. "Having an accord between the Treasury secretary and Fed chair is ideal," Druckenmiller said. The FT, in a profile published roughly a year earlier, characterized the pair as embodying Druckenmiller's approach to interpreting markets and economic policy.
The comments come from a source with a close personal and professional relationship to the nominee, and should be weighed accordingly.
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