Elizabeth Warren attacks Kevin Warsh at Senate hearing, floating corruption accusations

Key Points:

• Sen. Elizabeth Warren accused Federal Reserve Chairman Kevin Warsh of corruption during his congressional testimony, questioning the timing and source of his divestment of over $100 million in assets before taking office.
• Warren challenged Warsh on ethical concerns, including a report that Fed Vice Chair Michelle Bowman spoke at a Bank of America event during a blackout period, urging an investigation which Warsh deferred to the Fed’s Office of Inspector General.
• The exchange became heated as Warren pressed Warsh on whether he questioned Bowman about the alleged violation, while also accusing him of being influenced by President Trump to lower interest rates, despite Warsh holding rates steady.
• Warsh denied receiving any $100 million gift and emphasized the transformative impact of artificial intelligence on the economy, predicting short-term disruptions but long-term productivity and wage improvements.
• Warsh maintained a hawkish stance on inflation during his testimony, signaling a likely preference for raising interest rates to combat inflation despite declining to provide specific forward guidance.