Chair

Liberty

Kevin

World Liberty Financial

Reserve

<p>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.</p>
<h2 id="h-warsh-inviting-corruption" class="wp-block-heading">Warsh “Inviting Corruption”</h2>
<p>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.</p>
<p>Starting with, <a href="https://x.com/TheRealTRTalks/status/2078092338791092271" rel="noopener noreferrer nofollow">Warren asked</a> Kevin Warsh about a $100 million payment he received just days before taking office.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>“Who gave you $100 million right before you were sworn in?”&nbsp;</p>
</blockquote>
<p>Warsh declined to identify the source. Instead, he said he would comply with disclosure rules set by the Office of Government Ethics.</p>
<p>She said that refusing to identify the source raises serious concerns about conflicts of interest at the country’s most powerful financial institution.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>She said, “The tone that you are setting seems to invite corruption.”</p>
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<p>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.</p>
<h2 id="h-warren-says-fed-decisions-could-benefit-trump-s-crypto-business" class="wp-block-heading">Warren Says Fed Decisions Could Benefit Trump’s Crypto Business</h2>
<p>Further into the hearing, Warren also <a href="https://www.youtube.com/watch?v=Hscfe1RlX44" rel="noopener noreferrer nofollow">questioned</a> whether Warsh’s leadership is directly benefiting the Trump family’s crypto enterprise, World Liberty Financial (WLFI).</p>
<p>She said that the WLFI project generated <a href="https://coinpedia.org/news/nearly-1-million-trump-coin-investors-lost-3-8-billion-while-trump-made-1-4-billion/" rel="noopener noreferrer nofollow">around $1.4 billion</a> in 2025 and is now seeking a U.S. bank charter. If approved, the company could later request special Federal Reserve services, including direct access to the Fed’s payment system through a master account.</p>
<p>She warned that if political influence reaches the Federal Reserve, government decisions could benefit private crypto businesses instead of protecting the public.</p>
<h3 id="h-warsh-has-long-supported-crypto" class="wp-block-heading">Warsh Has Long Supported Crypto</h3>
<p>Unlike former Fed Chair Jerome Powell, Warsh has publicly supported digital assets. He has previously called Bitcoin “an important asset for policy-making” and said cryptocurrencies are now a permanent part of global finance.</p>
<p>His <a href="https://extapps2.oge.gov/201/Presiden.nsf/PAS+Index/F57618ED6E5F30B585258DD9002DD780/$FILE/Warsh%2C%20Kevin%20%20final278.pdf" rel="noopener noreferrer nofollow">financial disclosures</a> also show investments in several crypto companies, including Polychain Capital, dYdX, and Dapper Labs, along with holdings tied to Solana and Optimism.</p>
<h2 id="h-markets-expect-two-more-rate-hikes-under-warsh-in-2026" class="wp-block-heading">Markets Expect Two More Rate Hikes Under Warsh in 2026</h2>
<p>Since Warsh became Fed chair, expectations for higher interest rates have changed sharply.</p>
<p>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.</p>
<p>According to the CME <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" rel="noopener noreferrer nofollow">FedWatch Tool</a>, markets currently see a 59% chance of a rate hike in October and a 73.4% probability of another increase in December.</p>

Elizabeth Warren Accuses Fed Chair Warsh of “Inviting Corruption”

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