Elizabeth Warren accused Federal Reserve Chairman Kevin Warsh of potential corruption during a heated congressional testimony on Wednesday.
Elizabeth Warren criticized Federal Reserve Chairman Kevin Warsh for potential ethical lapses during his second day of testimony before the Senate Banking Committee. The Massachusetts Democrat questioned Warsh on his divestment of over $100 million in assets, asking specifically which billionaire provided the funds just before he took office. Warren also pressed Warsh on whether he had personally questioned Vice Chair Michelle Bowman regarding a reported violation of the Fed's "blackout period" during a private dinner. Warsh maintained a steady defense, stating he has complied with all legal requirements and preferred to let the Office of Inspector General handle the Bowman matter to avoid pre-judging the facts. While Warren suggested the chairman's tone invited corruption, Republican Senator Mike Rounds defended Warsh, noting that his "hands-off" approach to the investigation was appropriate. Additionally, Warsh highlighted the significant impact of artificial intelligence on the global economy, predicting it will improve American productivity and real wages in the long term despite potential short-term price disruptions.