Sen. Elizabeth Warren accused Federal Reserve Chair Kevin Warsh of “inviting corruption” after questioning him about a $100 million payment he allegedly received before taking office. He also warned that his decisions as Fed chairman could help Donald Trump’s growing crypto business.
Warsh: “Inviting corruption”
Sen. Elizabeth Warren used a Senate Banking Committee hearing to question whether Federal Reserve Chairman Kevin Warsh could make independent decisions under the Trump administration.
First, Warren questioned Kevin Warsh about the $100 million payment he received just days before taking office.
“Who gave you $100 million just before you took office?”
Warsh declined to identify the source. Instead, it said it would follow disclosure rules set by the Office of Government Ethics.
He said refusing to identify sources raises serious concerns about conflicts of interest at the nation’s most influential financial institutions.
She said, “The tone you are setting seems to be corrupting.”
He also criticized Mr. Warsh for not directly questioning Fed Vice Chair Michelle Bowman following reports that he attended a private dinner on Wall Street during the Fed’s official blackout.
Warren says Fed decision could benefit Trump’s crypto business
Further into the hearing, Warren also questioned whether Warsh’s leadership directly benefits the Trump family’s cryptocurrency company, World Liberty Financial.$WLFI).
she said this $WLFI The project will generate approximately $1.4 billion in 2025 and is currently seeking U.S. banking approval. If approved, the company could later request special Fed services, such as direct access to the Fed’s payment system through a master account.
He warned that if political influence reaches the Federal Reserve, government decisions could benefit private crypto businesses instead of protecting the public.
Warsh has long supported crypto
Unlike former Federal Reserve Chairman Jerome Powell, Warsh has publicly supported digital assets. He previously called Bitcoin an “important asset for policy-making” and said the cryptocurrency is now a permanent part of global finance.
His financial disclosures also show investments in several crypto companies including Polychain Capital, dYdX, and Dapper Labs, as well as holdings related to Solana and Optimism.
Market expects two more rate hikes in 2026 under Warsh policy
Expectations for interest rate increases have changed rapidly since Warsh became Fed chairman.
In early 2026, the market expected multiple rate cuts. Traders are now pricing in the possibility of one or two rate hikes by the end of the year.
According to the CME FedWatch tool, the market currently sees a 59% chance of an October rate hike and a 73.4% chance of another rate hike in December.
