The Federal Reserve is barely two months into Kevin Warsh’s tenure as chair, and it’s already fielding questions about the kind of thing that makes regulators look bad in headlines: a top official at a private Wall Street dinner right after a policy meeting.
On July 15, Warsh testified before the Senate Banking Committee, where Senator Elizabeth Warren pressed him on how the Fed is handling an investigation into Vice Chair for Supervision Michelle Bowman’s attendance at a Bank of America client dinner. The dinner took place June 17 or 18, just hours after the Federal Open Market Committee wrapped its policy announcement.
Why the timing matters
The Fed operates under a “quiet period” around FOMC meetings. Officials are expected to keep their distance from market participants to avoid any appearance of tipping the hand on rate decisions.
Bowman attended a Bank of America dinner during that window. She has pushed back firmly, stating she complied with all applicable rules and did not discuss monetary policy at the event.
