Warsh Says Fed Doesn't Want to Be in the 'Bailout Business'

Summary

Federal Reserve Chairman Kevin Warsh testified before the House Financial Services Committee, stating the central bank does not want to be in the bailout business and will not bail out anyone, including crypto. He emphasized lessons from the 2008 financial crisis and a commitment to mitigating extraordinary risks preemptively.

• Fed Chair Warsh says the Fed does not want to repeat 2008-style bailouts
• He explicitly rules out bailouts for crypto and stablecoins
• Warsh stresses mitigating extraordinary risks before they materialize
• The testimony signals a hands-off approach to crypto market distress