Fed Chair Kevin Warsh vows no crypto bailouts and pledges aggressive fight against inflation

Federal Reserve Chairman Kevin Warsh appeared before the House Financial Services Committee on July 14 for his first congressional testimony. He said the Fed will not rescue stable‑coin or other cryptocurrency firms in a crisis, stating “we have no tolerance for bailouts” and recalling his experience from the 2008 financial crisis. Warsh also warned that the central bank has “no tolerance for persistently elevated inflation” and described a needed “regime change” to bring inflation back to the 2 % target.

He reiterated the Fed’s institutional independence, telling lawmakers that he will “do my job” even if President Donald Trump applies pressure, and cited the Supreme Court’s recent decision upholding Fed autonomy. Warsh announced the creation of five task forces to review communications, balance‑sheet policy, economic data, productivity and jobs, and inflation frameworks, and said any future balance‑sheet changes will be previewed publicly before implementation.

Warsh noted the June Consumer Price Index fell to 3.5 % year‑over‑year, with core inflation at 2.6 %, but cautioned against premature optimism, saying “some may look at today’s data and say ‘mission accomplished’ – that is not my view.” He also disclosed personal holdings in digital assets such as Solana, Optimism and dYdX, drawing questions about potential conflicts of interest. No specific guidance on upcoming rate moves was given, and the next FOMC meeting is scheduled for July 28‑29.