Investors have been closely watching who will become the next Chairman of the Federal Reserve in May, as it will likely reshape interest rate policy, market liquidity, and overall financial conditions.
Notably, President Donald Trump has selected and formally nominated Kevin Warsh as the next Fed Chair to replace Jerome Powell when Powell’s term ends on Friday, May 15.
Warsh had his much-anticipated nomination hearing in front of the Senate Banking Committee today (Tuesday, April 21) after a week-long delay caused by procedural requirements. The market was eager to hear Warsh’s testimony on the heels of a rebound to new all-time highs, as investors have started to look past geopolitical fears and conflicts in the Middle East.
Supporters argue that Warsh has the experience and leadership to run the American economy, being the youngest person to ever serve on the Federal Reserve’s Board of Governors back in 2006 at the age of 35.
On the other hand, some have raised concerns that, unlike Powell, Warsh may not uphold the Federal Reserve’s independence and could cater to Trump’s demands, which have called for more aggressive rate cuts.
Ironically, Warsh has a hawkish reputation rooted in his past emphasis on inflation risks, although recent comments and market expectations point toward the likelihood that he will impose cautious, modest rate cuts, but not an aggressive easing or dovish cycle.
That said, here are the equity markets, stocks, and private venture-capital firms that investors may want to watch if Kevin Warsh is officially selected as the next Fed Chair.
An Overview of Warsh’s Investment Holdings
As a brief overview, Warsh would be the wealthiest person to ever serve as Fed Chair, with an estimated net worth of more than $130 million. Warsh’s largest disclosed asset holdings center overwhelmingly on his investments tied to the Juggernaut fund, a hedge fund vehicle launched by renowned billionaire Stanley Druckenmiller’s private investment firm, the Duquesne Family Office.
Along with this, Warsh has a wide array of smaller positions in tech, including AI, and crypto-related ventures, sectors that are prime beneficiaries of lower interest rates. While these investments point to Warsh being a “market-friendly” Fed Chair, it’s noteworthy that he has committed to divesting nearly all of his holdings before taking the position as required by the Federal Reserve’s ethics rules.
Crypto & Blockchain Investments
Warsh’s approach toward interest rates, regulation, and innovation policy is seen as potentially constructive for crypto markets, while others see him as a traditional central banker who would prioritize stability over experimentation.
Still, it’s noteworthy that Warsh has suggested the central bank issue a digital dollar to remain competitive, and his own financial holdings certainly suggest he takes digital-asset technology seriously.
Warsh has disclosed over 30 crypto-related investments, including in private startups Solana, Optimism, Blast, dYdX, and Compound. Polymarket is also a notable holding, a crypto-based prediction market company that isn’t publicly traded at the moment, but accredited investors can access pre-IPO shares or gain indirect exposure through the Intercontinental Exchange (ICE).
Cryptocurrencies often react strongly to favorable interest-rate policies, with it worth mentioning that Bitcoin has seen a 10% rebound over the last month despite a slight dip on Tuesday.
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SpaceX & Tech Startups
Warsh has reported a stake in SpaceX, Elon Musk’s private aerospace company that is expected to go public sometime in the near future, and has assets tied to other emerging technology investments, such as Cafe X (robotic coffee systems), Cionic (wearable mobility tech), and Hebbia (AI research).
Analysts have highlighted Warsh’s interest in innovation and modernization, awareness of global competition in digital finance, and experience in private-sector investing as potentially supportive for tech stocks. Meanwhile, other analysts have pointed to Warsh’s historically hawkish views on interest rates as potential challenges, along with his skepticism of prolonged quantitative easing and focus on inflation control.
UPS – UPS
Warsh hasn’t expressed any special support for UPS UPS, but this is his notable publicly held holding, and he also serves on the company’s board of directors, a position he will have to vacate if confirmed as Fed Chair.
Fed policies that maintain stable, moderate economic growth tend to create a favorable environment for logistics and shipping companies like UPS. Of course, UPS investors are hoping that the Trump administration decides to eventually restore the de minimus exemption, which allows packages with a value of $800 or less to be shipped duty-free.
Warsh, being the new Fed Chair, could persuade this cause with UPS stock currently landing a Zacks Rank #3 (Hold) and remaining a popular pick for income investors with a 6% annual dividend yield. The argument for long-term value has still been apparent for UPS stock, but more supportive economic and political policies could certainly help.
To that point, UPS’s profits and free cash flow have been under pressure, as illustrated by its high payout ratio (92%), meaning most of its earnings are being paid out as dividends. UPS appears to be committed to keeping its lofty yield, although this leaves less room for reinvestment, debt reduction, and cash reserves.
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Coupang – CPNG
The other publicly traded company that Warsh has an investment in is South-Korean e-commerce provider Coupang CPNG), with the stake existing as part of his compensation for serving on the company’s board of directors as well.
Aforementioned, Warsh will vacate his board seats if elected as Fed Chair, but global economic policies that keep the interests of U.S. allies such as South Korea in mind could be beneficial for Coupang stock, which also lands a Zacks Rank #3 (Hold). Coupang’s rapid sales expansion has alluded to its future earnings potential, with the company expected to move further past the profitability line next year.
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Estee Lauder – EL
Rounding out the stocks to watch if Warsh becomes Fed Chair is Estee Lauder EL). The direct connection here is that Warsh is married to Jane Lauder, an heiress to the Estée Lauder Companies, whose wealth is directly tied to the company’s shares through inheritance and her ongoing role on its board of directors.
The consumer staples sector is typically less affected by policy shifts, and even cosmetic companies like Estee Lauder are relatively non-cyclical, supported by psychological factors like the “Lipstick Effect,” where consumers keep buying small beauty items even during downturns.
While Estee Lauder could ironically provide a defensive hedge if broader economic uncertainty arises, if and when Warsh takes over as Fed Chair, its stock currently daunts a Zacks Rank #4 (Sell).
The leading provider of skin care, makeup, fragrance, and hair care products has an appealing growth trajectory, but FY26 and FY27 EPS estimates have dipped in the last 30 days. Magnifying the decline in EPS revisions is that Estee Lauder stock is trading at 34X forward earnings, a noticeable premium to its Zacks Cosmetics Industry average of 14X and the benchmark S&P 500’s 23X.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
Coupang, Inc. (CPNG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).