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Federal Reserve Chair Kevin Warsh reiterated that the central bank would not provide a bailout even if a financial crisis were to hit the cryptocurrency market.
At a House hearing on July 14, Warsh was asked whether the Fed could intervene in a crisis in the digital-asset market. He replied that he did not want the central bank involved in bailouts, Crypto Briefing reported.
He said the Fed would do everything it could to reduce such risks. Even so, he stressed that he wants to uphold the principle of not bailing out specific industries, including crypto, even if a crisis emerges in the coming years.
Warsh took office as Fed chair on May 15 and led his first Federal Open Market Committee meeting in June. At that meeting, the Fed held its benchmark interest rate unchanged at 3.50% to 3.75%, citing inflation that remained above its 2% target.
Warsh has consistently criticized the large-scale asset purchases and balance-sheet expansion that followed the 2008 global financial crisis, including during his tenure as a Fed governor. He has maintained that the Fed should reduce its balance sheet over the long term, with assets currently at $6.5 trillion to $6.74 trillion.
