Trump Fed Mistake Remark Everyone Is Getting Wrong

President Donald Trump sparked a viral debate on social media after a February 9 interview on Fox Business’s Kudlow show, where he discussed his decision-making around Kevin Warsh, his nominee for Federal Reserve (Fed) Chair.

Short clips circulating on X (Twitter) show Trump saying he “made a big mistake,” fueling confusion over whether he now regrets nominating Warsh.

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Trump Admits a “Big Mistake”—But Is It About Kevin Warsh or Powell?

In full context, Trump was reflecting on 2017, when he chose Jerome Powell over Warsh, who had been the “runner-up” at the time.

Trump said the decision was influenced by advice from then-Treasury Secretary Steven Mnuchin, calling it a “really big mistake.”

Far from expressing current regret, Trump praised Warsh, describing him as a “high-quality person” capable of delivering extraordinary results if confirmed.

Trump’s comments included an eye-catching claim: if Warsh “does the job that he’s capable of,” the US economy could grow as much as 15%. Notably, this projection is far beyond historical peaks of 4–7% growth in strong years.

This bold statement has sparked widespread debate, with speculation that Warsh will be set up as a “fall guy” if such ambitious expectations are not met.

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Meanwhile, the remarks also have clear market implications. Analysts and crypto commentators have interpreted Trump’s enthusiasm for Warsh as a signal that the next Fed leadership could favor lower interest rates, stronger liquidity, and pro-growth policies.

With a Fed chair who will cut rates and dismiss concerns about inflation, such growth would normally push prices sharply higher.

Posts on X highlight potential implications for Bitcoin, gold, and other risk assets. The general sentiment is that Warsh’s policy approach could lead to easier monetary conditions, reminiscent of “yield curve control” or coordinated Treasury-Fed operations.

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However, misleading captions and out-of-context clips have driven a spike in engagement, with some speculating about alternative nominees like Judy Shelton or questioning whether Warsh could be withdrawn.

However, data on Polymarket shows a modest 3% probability of Trump nominating Shelton, against 95% odds in favor of Warsh.

Fact-check threads and full-clip posts are attempting to clarify that Trump’s “mistake” comment referred to the past, not the present nomination.

Memes, commentary, and speculation about inflation, debt levels, and Fed independence have made the discussion one of the most viral economic topics on X in recent days.

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Warsh himself has a history that blends traditional central banking experience with a measured openness to financial innovation.

A former Fed Governor (2006–2011) and Hoover Institution senior fellow, he is known as an inflation hawk who favors fiscal restraint and a smaller Fed balance sheet.

He has personal exposure to crypto, investing in projects such as Basis and Bitwise, though he views Bitcoin primarily as a store of value rather than a transactional medium.

Sentiment suggests his tenure could indirectly support risk assets by providing macro stability and eventual clarity on rate policies. However, any direct crypto rally is unlikely until he assumes office in May 2026 and policy actions materialize.