In July 14-15 congressional testimony, Warsh faced questions over Michelle Bowman’s Bank of America dinner and Fed blackout controls while emphasizing 3.5% CPI, 63 months of above-target inflation, and risks digital assets may pose to liquidity facilities.
Federal Reserve Chair Kevin Warsh used his first major congressional testimony on July 14 and 15, 2026 to stress that inflation remains the Fed’s top priority, citing June CPI of 3.5% year-over-year and 63 consecutive months above the central bank’s 2% target, while also facing sharp Senate questioning from Elizabeth Warren over Vice Chair for Supervision Michelle Bowman’s attendance at a Bank of America client dinner on June 17 or 18 shortly after a Federal Open Market Committee policy announcement. Warsh, sworn in on May 22, 2026 as the 17th Fed chair succeeding Jerome Powell, said the Fed had no reason to believe criminal activity occurred and pledged cooperation with any inquiry. Bowman has said she followed applicable rules and did not discuss monetary policy. Warsh also said digital assets pose emerging risks to Fed liquidity facilities and signaled a cautious stance toward banks’ crypto ties, while backing new task forces on inflation and productivity and streamlined bank capital rules.