Fed Chair Kevin Warsh is scheduled to testify before the House Financial Services Committee on July 14 at 10 a.m. Eastern, presenting the central bank's semi-annual Monetary Policy Report in his first congressional appearance since confirmation. The testimony is required under the Humphrey-Hawkins Full Employment Act of 1978, which mandates the Fed chair appear before both chambers of Congress twice a year. The hearing arrives as inflation remains sticky, energy prices have climbed amid the Iran war, and traders have priced a 49% probability of a September rate hike following Warsh's hawkish tone at his debut FOMC meeting on June 17.
Warsh Testimony Scheduled Under Humphrey-Hawkins Act Requirement
Warsh will appear before the House Financial Services Committee on July 14 at 10 a.m. Eastern to present the central bank's semi-annual Monetary Policy Report and answer questions from lawmakers. The Senate Banking Committee is expected to hold its own session with the chair the following day. The testimony is required by law under the Humphrey-Hawkins Full Employment Act of 1978, which mandates the Fed chair appear before both chambers of Congress twice a year, in February and July, to explain the central bank's policy decisions. Warsh was confirmed in May by a 54-45 Senate vote to succeed Jerome Powell.
FOMC Voted 12-0 on June 17 to Hold Rates at 3.5%-3.75%
At his first meeting as chair, the Federal Open Market Committee (FOMC) voted 12-0 on June 17 to hold the federal funds rate in a range of 3.5% to 3.75%, the fourth consecutive meeting without a change. Warsh used his first news conference to underscore the central bank's commitment to its 2% inflation target, stating: "We've missed on inflation for five years and we're going to fix that." He announced the creation of several task forces to review how the Fed communicates, the data it relies on, and the frameworks it uses to judge inflation. Nine Fed officials penciled in at least one rate hike this year.
Bitcoin Trades Near $64,000 as Rate-Hike Probability Jumps to 49%
According to CME Fedwatch data, the probability of a September rate hike jumped to 49%, up from 27% a day earlier following Warsh's June 17 news conference. Bitcoin traded near $64,000 as rate-cut hopes for the year faded. Research firm Grayscale has argued that bitcoin's recent underperformance is tied directly to rising rate-hike expectations. Warsh has stated he will not be a "sock puppet" for the White House, despite President Trump pushing publicly for lower rates.
Frequently Asked Questions
What did Fed Chair Kevin Warsh announce on July 14?
Warsh is scheduled to testify before the House Financial Services Committee on July 14 at 10 a.m. Eastern, presenting the semi-annual Monetary Policy Report as required under the Humphrey-Hawkins Full Employment Act of 1978.
Why did the FOMC hold rates at 3.5%-3.75% on June 17?
The FOMC voted 12-0 on June 17 to hold rates at 3.5%-3.75%, marking the fourth consecutive meeting without a change. Warsh emphasized the central bank's commitment to its 2% inflation target and stated the Fed has "missed on inflation for five years" and intends to fix that.
How did crypto markets react to Warsh's June 17 policy decision?
Bitcoin traded near $64,000 following Warsh's hawkish tone at the June 17 meeting. Traders priced a 49% probability of a September rate hike, up from 27% a day earlier, as rate-cut hopes for the year faded.
