Senate Banking Committee hearing focuses on Fed Chair's asset divestment and alleged ethics breaches
Select a version of the text written from a presumed ideological perspective. This is not the original text, but a hypothetical version — how someone with that viewpoint might have phrased it. Tapping the current version again will return to the original or select cleaned version.
During a Senate Banking Committee hearing, Chairman Kevin Warsh faced questioning from Senator Elizabeth Warren about a $100 million asset sale and a possible violation of a blackout period by a Fed vice chair, while also discussing the economic impact of artificial intelligence.
Federal Reserve Chairman Kevin Warsh testified before the Senate Banking Committee on Wednesday, where he was questioned by Senator Elizabeth Warren about a recent divestment of more than $100 million in assets. Warren asked Warsh who provided the funds for the sale, referencing a Wall Street Journal report that suggested the timing could raise conflict-of-interest concerns. Warsh responded that he has complied with all Office of Government Ethics requirements and that the assets were fully sold or in the process of being sold before he assumed his role.
Warren also raised a report that Fed Vice Chair for Supervision Michelle Bowman spoke at a private Bank of America dinner during a blackout period that restricts central bankers from discussing monetary policy. Warsh said the matter would be referred to the Fed’s Office of Inspector General and noted he was not present at the meeting.
Republican Senator Mike Rounds later asked Warsh directly whether anyone had given him $100 million, to which Warsh replied, "No."
In addition to the ethics questions, Warsh highlighted artificial intelligence as a major driver of economic change, stating it could boost productivity and real wages over the long term while potentially causing short-term price increases that he does not consider inflationary. He reiterated the Federal Reserve’s commitment to reducing inflation but declined to provide specific guidance on future interest-rate moves.