Kevin Warsh, the designated Federal Reserve Chair, disclosed his initial asset divestment plan on Tuesday ahead of his upcoming swearing-in ceremony. The disclosure documents did not specify the buyers of these assets.
In a form submitted to the Office of Government Ethics, Warsh listed the names of the assets he is divesting but did not include the sale amounts. During his confirmation hearing in April, Warsh, who is poised to become the wealthiest Fed Chair in history, stated that he would align his asset holdings with the ethics rules of the U.S. government and the Federal Reserve.
Warsh’s form included the divestment of an investment named "Juggernaut Fund L.P." In a financial disclosure form released last month prior to his confirmation hearing, he listed two entries for this fund, totaling a value of at least $100 million.
Warsh also disclosed the sale of several other assets, as well as one asset divested by his wife.
The incoming Fed leader is scheduled to be sworn in on Friday, succeeding current Chair Jerome Powell. Powell plans to remain on the Board of Governors to address tensions between the Federal Reserve and the Trump administration.
**Planned Divestments**
This disclosure was anticipated as part of an agreement with the U.S. government to bring Warsh’s wealth into compliance with current ethics rules. The identity of the buyers of these assets may become an issue for Warsh after he assumes office, as some Democrats have expressed concerns about potential purchasers.
On April 21, Warsh told members of the Senate Banking Committee, "To avoid any questions about my independence or the clarity of my financial record, I have agreed to divest nearly all of my financial assets."
Warsh stated that after completing the required divestments, as Fed Chair, he would hold almost no financial assets, with nearly all of his wealth held in cash.
Last month’s financial disclosure report showed that Warsh holds at least $100 million in various investments, many of which the designated Fed Chair declined to disclose due to confidentiality agreements.
According to his April disclosure, the Juggernaut investment listed for sale on Tuesday previously generated over $10 million in annual income for Warsh.
During the confirmation hearing, U.S. Senator Elizabeth Warren expressed concerns about who might purchase Warsh’s assets and whether this could create conflicts of interest.
The Federal Reserve’s ethics rules, formally established in early 2022, are among the strictest in the U.S. government. These rules were tightened following trading controversies that led to the departure of several Fed officials after multiple Inspector General investigations.
Fed rules strictly limit the types of assets officials can hold and how funds are managed. These regulations are designed to ensure public confidence that policymakers are acting in the public interest. The rules also apply to immediate family members.
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