Fed Chair Kevin Warsh Warns on Inflation, Lists Crypto Holdings in Disclosure

Federal Reserve Chair Kevin Warsh told Congress the central bank has "no tolerance for persistently elevated inflation," reaffirming the Fed's commitment to its 2% target, while also making an unprecedented disclosure for a sitting Fed chair: personal holdings in digital assets. Warsh delivered his first congressional testimony since his May confirmation on July 14, appearing before the House Financial Services Committee. He framed the Fed's policy stance as resolutely focused on bringing inflation down, even as recent data underscore the challenge. June's Consumer Price Index rose 3.5% year over year, well above the Fed's goal. Warsh cited global energy crises as a major driver of stubborn price pressures, suggesting part of the inflation problem sits outside the direct reach of domestic monetary policy. Markets parsed the remarks alongside the inflation data. Bitcoin traded erratically in a band between $62,000 and $64,000. Warsh's financial disclosures listed positions in Solana, Optimism and dYdX, among other digital assets, drawing immediate attention on Capitol Hill. Rep. Maxine Waters pressed Warsh on potential conflicts of interest, questioning whether a Fed chair holding crypto could influence regulatory outcomes that might affect those assets. Warsh reiterated a view he raised during confirmation: digital assets are already embedded in the U.S. financial services ecosystem. He described Bitcoin as an "important asset" for interpreting broader economic conditions, while also warning that crypto technologies could pose risks to payments-system stability. The testimony comes as Congress debates the CLARITY Act, legislation designed to clarify regulatory jurisdiction over digital assets. A Senate follow-up session is expected July 15, where lawmakers are likely to scrutinize Warsh further on both conflict-of-interest concerns and how the Fed intends to narrow the gap between 3.5% inflation and its 2% target.