Elizabeth Warren attacks Fed chair Kevin Warsh in Senate hearing, floating corruption accusations
Sen.Elizabeth Warren attacked Federal Reserve Chairman Kevin Warsh during his testimony before Congress on Wednesday, with the Massachusetts Democrat accusing the top central banker of corruption.As Warsh appeared before the Senate Banking Committee in his second day of congressional testimony, Warren laid out a history of ethical breaches by top officials at the Federal Reserve.“Instead of trying to repair this broken culture, I’m concerned that you seem to be embracing it,” Warren said, noting Warsh’s divestment of more than $100 million in assets, which the chairman has said he fully sold or was in the process of selling before taking the helm.“You say now that you’ve sold those shares.
In other words, somebody wrote you a check for more than $100 million days before you entered office.Chair Warsh, who wrote that check?” Warren pressed. As Warsh started to respond that he has fully honored obligations from the Office of Government Ethics, Warren jumped in.“I asked you a very specific question.
Who gave you $100 million right before you were sworn in? Was it a billionaire who has businesses with the Fed? Was it Stanley Druckenmiller, who’s made billions of dollars betting on what the Fed does?” she asked.When Warsh started to repeat that he has complied with all legal requirements, Warren exclaimed: “That’s not an answer!”“Well, it is an answer, actually, senator,” Warsh replied.Warren also grilled Warsh about a Wall Street Journal report that Michelle Bowman, the Fed’s vice chair of supervision, spoke at an invite-only Bank of America dinner last month during a blackout period, which bars central bankers from speaking about monetary policy publicly.Warsh said he plans to leave the matter to the Fed’s Office of Inspector General.Warren has called on the office to investigate Bowman.“I wasn’t at the meeting, I don’t know the facts,” Warsh said Wednesday.Warren replied: “Did you ask her? Did you care enough to ask? How...