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Senator Elizabeth Warren accused Federal Reserve Chair Kevin Warsh of “inviting corruption” after asking about a reported $100 million payment he received before taking office. She also warned that his decisions as Fed chair could help Donald Trump’s growing crypto business.
Warsh “Inviting Corruption”
Senator Elizabeth Warren used the Senate Banking Committee hearing to question whether Federal Reserve Chair Kevin Warsh can make independent decisions under the Trump administration.
Starting with, Warren asked Kevin Warsh about a $100 million payment he received just days before taking office.
“Who gave you $100 million right before you were sworn in?”
Warsh declined to identify the source. Instead, he said he would comply with disclosure rules set by the Office of Government Ethics.
She said that refusing to identify the source raises serious concerns about conflicts of interest at the country’s most powerful financial institution.
She said, “The tone that you are setting seems to invite corruption.”
She also criticized Warsh for not directly questioning Fed Vice Chair Michelle Bowman after reports that she attended a private Wall Street dinner during the Fed’s official blackout period.
Warren Says Fed Decisions Could Benefit Trump’s Crypto Business
Further into the hearing, Warren also questioned whether Warsh’s leadership is directly benefiting the Trump family’s crypto enterprise, World Liberty Financial ($WLFI).
She said that the $WLFI project generated around $1.4 billion in 2025 and is now seeking a U.S. bank charter. If approved, the company could later request special Federal Reserve services, including direct access to the Fed’s payment system through a master account.
She 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 Fed Chair Jerome Powell, Warsh has publicly supported digital assets. He has previously called Bitcoin “an important asset for policy-making” and said cryptocurrencies are now a permanent part of global finance.
His financial disclosures also show investments in several crypto companies, including Polychain Capital, dYdX, and Dapper Labs, along with holdings tied to Solana and Optimism.
Markets Expect Two More Rate Hikes Under Warsh in 2026
Since Warsh became Fed chair, expectations for higher interest rates have changed sharply.
At the beginning of 2026, markets expected several rate cuts. Today, traders are pricing in one to two possible rate hikes before the end of the year.
According to the CME FedWatch Tool, markets currently see a 59% chance of a rate hike in October and a 73.4% probability of another increase in December.