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Fed Chair Warsh Rules Out Crypto Bailouts, Holds Rate at 3.5%

Monetary Policy Regulation & Policy Forex

2026-07-14 17:22:16

Fed Chair Kevin Warsh told Congress on July 14 that the Federal Reserve will not extend bailouts to cryptocurrency or stablecoin markets, stating "We do not want to be in the bailout business, full stop." During the House hearing on the Fed's Semi-Annual Monetary Policy Report, Rep. Brad Sherman asked whether the Fed would backstop crypto markets the way it supported money market funds in 2008. Warsh maintained that position while pledging the Fed would "mitigate extraordinary risks" without bailing out the sector. The Fed held its benchmark interest rate at 3.5% to 3.75% at its June meeting, Warsh's first as chair.

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