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Listen to Fed Chair Warsh on how the Fed has newly dealt with Operation Chokepoint 2.0 on digital assets. [Spoken audio]: Thank you, Mr. Chairman and Chairman Marsh. Welcome. Thank you for being here in Godspeed with the position you now have and we wish you the best of luck. First I want to talk about Operation Choke Point as you are fully aware. Operation Choke Point 2.0 involved partisan actors at the Fed using quote, reputation risk as a means to target and debank firms and individuals in the digital asset ecosystem. The energy industry and really anyone that partisan actors at the Fed believed unworthy of a bank account or loan. This was especially egregious given the fact that the Fed does not have a statutory authority from Congress to supervise for reputation risk. While I'm happy that reputation risk has been wiped from the Fed's guidance to examiners, can you please tell us what steps the Fed can take to durably ensure that statutory silence is never again abused by partisan actors to attempt through the Fed what they cannot make through law in Congress and also what actions that you may be taking. So thank you, Congressman. Reputational risk has been removed from the dashboard that supervisors and regulators will have anything to do with. My view is that being a good supervisor and regulator is tough business and we don't need to make it harder by bringing politics into it. Vice Chair Bowman has begun a series of reforms before I arrived in this and I think you're going to find in the coming quarters and years we're going to continue to reform and refine our regulatory system so that we can have a safer and sounder financial system and allow a more competitive one too. All right, thank you for that and we appreciate your work in that area The Fed currently holds a considerable share of federal debt and has for almost two decades now With a ready buyer and low interest rates It's not surprising that Congress has been incentivized to run up large and growing deficits over the same time frame You've spoken before about the Fed's role here in the threat of monetary dominance and fiscal dominance How can the Fed get out of the business of underwriting Congress's fiscal irresponsibility? One thing we can do is think hard about when we're going to be buying debt from the Treasury. This might not sound like perfect virtue but when we have a crisis like in 2008 and 2020 my view is you created the central bank to take extraordinary actions. In more normal times, in a more normal business and financial cycle, fiscal policy needs to be a decision that you make with the administration. Fed should have nothing to do with it. I've set up a task force to focus on the balance sheet to ask the question, first, what's the effect of the balance sheet on the conduct of monetary policy and ultimately inflation. Second, what are the pros and cons of different regimes? I'm not of the mistaken view we can go back to where we were when I arrived at the Fed in 2006, but I think there are several other sustainable equilibrium we can achieve. And the third question is equally important. It took us nearly 18 years to find our way into this balance sheet. We're holding a lot of long-term treasury debt, long-term mortgage-backed securities. We won't be able to make changes overnight. Any changes that we make would be well-deliberated, would be public, would be understood, and there'd be quite a bit of time before any of that was operationalized. I look forward to the recommendations of the task force, and I look forward to hearing from my colleagues around the FOMC as we contemplate alternatives. Well, thank you for that. And what are your greatest concerns with regard to the threat of monetary dominance? Yeah, so you have a different job than we do. The independence that many of your colleagues have spoke about this morning is a political and economic decision to give us the pen on interest rates to let us be the deciders of monetary policy. I've always taken that as part of a bargain. You're giving us independence on that and my judgment is we should be staying out of fiscal policy. We shouldn't be weighing in no matter how tempting it might be either directly by buying assets that have some flavor of fiscal policy or by opining on subjects that really isn't our business. We're gonna try to stick in our lane at the Federal Reserve. We've been good at that for the last six weeks, but there's always a temptation to wander in other areas. I'm gonna try to be reserved in my comments on fiscal policy with you and your colleagues. That's your job, it's not mine. Well, thank you for those answers are very thorough and very refreshing to hear. And with that, Mr. Chairman, I yield back.