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Federal Reserve Chairman Kevin Warsh was subjected to intense questioning by Sen. Elizabeth Warren (D-Mass.) regarding potential ethics violations.
On Wednesday, his second day of monetary policy testimony on Capitol Hill, Warsh was grilled by Warren about a $100 million amount he was required to divest after becoming Fed chair, and which he refused to disclose, asking if anyone gave him that amount before he was sworn in.
"Who gave you $100 million right before you were sworn in? Was it a billionaire who has business with the Fed?" asked Warren.
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She further pressed if billionaire investor Stanley Druckenmiller, or another billionaire who profits from Federal Reserve decisions, provided him with the money.
Notably, Warsh has longstanding ties to Druckenmiller, having joined Duquesne Family Office after leaving the Fed in 2011 and previously investing tens of millions of dollars in the Juggernaut Fund, which was linked to Druckenmiller's firm. Those investments have since been divested.
Warsh did not directly answer the question but assured that he would fully comply with the Office of Government Ethics.
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Warren also probed Warsh about whether he had questioned his colleague, Fed Vice Chair for Supervision Michelle Bowman, about her alleged participation in a meeting with bankers, which could have contravened Fed rules.
In June, the Wall Street Journal reported that Bowman had attended a private gathering of bankers, organized by Bank of America Corp, shortly after a Fed meeting in June, where she discussed interest rates. This could have violated the Fed's "blackout period" policy, which bans officials from discussing monetary policy publicly or privately around the time of their meetings.
Warsh did not confirm whether he had addressed the issue with Bowman, stating that the matter is under investigation by the Fed's inspector general, Michael Horowitz.
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The appointment of Warsh as the Federal Reserve Chair was met with strong opposition, particularly from Senator Elizabeth Warren. In May 2026, Warren criticized Warsh as being President Donald Trump's 'Sock Puppet', accusing him of trying to control interest rates. Warren argued the appointment was "not good for working families—it's good for Wall Street."
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