Elizabeth Warren attacks Fed chair Kevin Warsh in Senate hearing, floating corruption accusations

• Warren demanded Warsh disclose who gave him $100 million before taking office, specifically asking if it came from billionaire Stanley Druckenmiller or others with Fed business interests; Warsh later denied receiving such payment
• Warren criticized Warsh for not investigating Vice Chair Michelle Bowman's alleged appearance at an invite-only Bank of America dinner during a blackout period that bars Fed officials from discussing monetary policy
• Warsh testified that artificial intelligence represents the 'most consequential change' to the economy in his lifetime and may raise prices over the next 12 months, though he does not view this as inflationary

Summary:

Sen. Elizabeth Warren (D-MA) sharply criticized Federal Reserve Chairman Kevin Warsh during his Senate Banking Committee testimony on Wednesday, making accusations of corruption and ethical violations.

Warren questioned Warsh about receiving $100 million before his swearing-in, specifically asking if billionaire Stanley Druckenmiller—who profits from Fed decisions—was the source. Warsh repeatedly stated he complied with Office of Government Ethics requirements but declined to identify who provided the funds. Warren pressed Warsh on his divestment of financial holdings, which he claims were fully sold or in process before assuming leadership.

The senator also challenged Warsh regarding Vice Chair of Supervision Michelle Bowman, who allegedly spoke at an invite-only Bank of America dinner during a monetary policy blackout period. Warren demanded to know if Warsh had questioned Bowman about potential violations. Warsh said he hadn't asked to avoid "pre-judging facts" and deferred the matter to the Fed's Inspector General.

Warren accused Warsh of being in "President Trump's pocket," referencing Trump's stated intention to nominate a Fed chair who would lower rates. However, Warsh kept rates flat at 3.5%-3.75% at last month's meeting.

Republican Sen. Mike Rounds (SD) later gave Warsh time to respond. When asked directly if anyone gave him $100 million, Warsh answered "No."

On policy matters, Warsh emphasized artificial intelligence as the most consequential economic change of his lifetime. He warned AI would likely raise prices over 12 months but views this as temporary, not inflationary. He expressed optimism about AI's long-term benefits for U.S. productivity and employment.