Senate Hearing Puts Fed Ethics Under Scrutiny

On July 15, 2026, Federal Reserve Chairman Kevin Warsh faced a two-day hearing before the Senate Banking Committee. Democratic Senator Elizabeth Warren repeatedly asked whether Warsh had queried Vice Chair for Supervision Michelle Bowman about her attendance at a private Bank of America gathering of bankers on June 17, hours after a Fed policy meeting. Warren also pressed Warsh on a $100 million transfer he received shortly before taking office, questioning whether the donor had ties to the Fed.

CNNElizabeth Warren Clashes With Fed Chair Kevin Warsh Over Ethics

Fed officials are prohibited from discussing monetary policy during a “blackout period” that begins before each policy meeting and extends through the following day, a safeguard intended to prevent market manipulation. The Wall Street Journal reported that Bowman spoke about interest rates at the June 17 gathering, a claim CNN has not independently verified. Warsh’s past connections include a decade-long relationship with investor Stanley Druckenmiller and prior investments in the Juggernaut Fund linked to Druckenmiller’s firm, all of which have since been divested.

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Warsh declined to confirm any conversation with Bowman, citing an ongoing investigation by the Federal Reserve’s independent inspector general Michael Horowitz. He emphasized respect for the inspector’s work and said he would not “micromanage” the probe. Warsh also affirmed his intent to fully comply with the Office of Government Ethics regarding the $100 million transfer. Republican Senator Mike Rounds defended Warsh, noting that his hands-off stance on the Bowman matter appeared appropriate and warning that involvement could have been perceived as an attempt to influence the investigation.

Elizabeth Warren Clashes With Fed Chair Kevin Warsh Over Ethics

Warren characterized Warsh’s evasive answers as fostering the appearance of corruption, arguing that the lack of transparency undermines confidence in the central bank’s integrity. She framed the $100 million question as a test of whether any billionaire with business before the Fed had improperly influenced the chair’s decisions.

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• “Did you ask?” — Elizabeth Warren, Senator

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• “The tone that you are setting is one that seems to invite corruption.” — Elizabeth Warren, Senator

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• “I’m aware of the letter you sent to the inspector general. Out of an enormous respect for him, his investigation, what he chooses to do with it” — Kevin Warsh, Federal Reserve Chairman

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• “Who gave you $100 million right before you were sworn in? Was it a billionaire who has business with the Fed? Was it Stanley Druckenmiller, who’s made billions of dollars betting on what the Fed does? Or was it a different billionaire who gave you the money?” — Elizabeth Warren, Senator

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• “No.” — Kevin Warsh, Federal Reserve Chairman

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• “If he would have gotten involved in it, the accusation from some members on this committee would have been that you were trying to influence it,” — Mike Rounds, Senator

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