Trump’s Fed Goon Cornered on Financial Ties to Epstein

Democratic Senator Elizabeth Warren directed a barrage of incisive questions at Donald Trump’s nominee for the next Chairmanship of the Federal Reserve, pressing him to explain his ties to Jeffrey Epstein; Kevin Warsh, however, refused to answer them directly.

The top-ranking Democrat on the Senate Banking Committee accused Mr. Warsh of holding investments worth over $100 million—the precise details of which he has not disclosed to ethics officials or the public—even as he seeks to take the helm of the U.S. central bank.

During his confirmation hearing on Tuesday, Ms. Warren asked: “Do the Juggernaut Fund or the THSDFS LLC invest in any companies affiliated with President Trump or his family, companies that have facilitated money laundering, Chinese-controlled companies, or financing vehicles established by Jeffrey Epstein?”

Mr. Warsh did not answer her question directly; instead, he chose to address the role of the Federal Reserve as well as the broader ethics scandals to which Ms. Warren had previously alluded.

Ms. Warren interrupted him, saying: “Will you answer my question, please?”

She reiterated her question: “I asked, you have $100 million in undisclosed assets, and what I’m asking is, are any of those with this outfit that invests in companies affiliated with President Trump or his family, companies that have facilitated money laundering, Chinese-controlled companies, or financing vehicles set up by Jeffrey Epstein? It’s a yes or no question,”

Mr. Warsh attempted to respond again, stating: “Senator, I have worked tirelessly with the ethics officials at the Office of Government Ethics.” However, Ms. Warren did not accept this answer.

Ms. Warren could be heard interrupting him—with both speakers talking simultaneously—saying: “Yes, and you have not revealed a $100 million in assets.”

For his part, Mr. Warsh insisted that he had worked with officials to reach an ethics agreement requiring him to “sell all [his] financial assets, including those associated with Duquesne.”

The reference to Epstein—the child abuser—arose after Mr. Warsh’s name appeared in the “Epstein files” released by the Department of Justice last January. Emails sent to or from an account linked to Epstein suggest that Mr. Warsh and his wife, Jane Lauder, received invitations to attend events that Epstein had helped organize. It remains difficult to determine exactly who attended all of these events.

Nevertheless, Mr. Warsh refrained from disclosing the existence of Epstein-linked investments during his intense questioning on Tuesday, prompting Ms. Warren to point out once again that he was not directly answering her questions.

“Mr. Warsh, are you refusing to tell us whether you hold investments in—for example—entities created to serve the interests of Jeffrey Epstein? Is that what you are trying to tell us?” Ms. Warren reiterated her question, placing emphasis on the late, convicted sex offender. “Are you simply refusing to tell us?” »

“Senator, what I wish to clarify is that the assets to which you refer as ‘Juggernaut’ will be divested if my nomination is confirmed—and this divestment will take place even before I take office and am sworn in,” stated Mr. Warsh, referring to the aforementioned hedge fund.

Ms. Warren questioned Mr. Warsh’s willingness to disclose how he intended to divest these opaque assets, noting that such a move could raise questions regarding the possibility that the buyers might write colossal checks to the benefit of a nominee to the Federal Reserve.

Mr. Warsh countered that Ms. Warren’s grievance might not lie with him personally, but rather with the Office of Government Ethics—with which he is in “full agreement”—regarding the procedures for divesting his financial assets.

“Will you disclose how you intend to divest these assets, or will you simply accept a $100 million check from someone whose business consists exclusively of betting on the decisions the Federal Reserve will make?” Ms. Warren pressed.

Mr. Warsh merely reiterated the assurance that he would “monetize” his assets before officially taking office.

Warsh’s evasive responses did not end there during the grueling hours of questioning he endured on Capitol Hill on Tuesday, as he strove to avoid answering any question that might displease Donald Trump—another figure known for his ties to Epstein.

He refused to say who had won the 2020 election when Senator Warren put the question to him. During the hearing, he also dodged every attempt to get him to identify potential points of disagreement with the President, despite the pressure exerted upon him; he ultimately resorted to a rather thin dodge, claiming that his own self-assessment did not align with the description Trump had given of him—portraying him as someone who looked as if he had stepped straight out of a casting agency.

Later, he declined to assign a numerical grade to the U.S. economy. Responding to a question from Senator Raphael Warnock, he sidestepped the request in a peculiar and roundabout manner, noting that he was in the habit of giving an “A” to all his students.

Warsh also refrained from committing to defend Lisa Cook, a Governor on the Federal Reserve Board—just as his predecessor had done when Trump attempted to remove her. He insisted that the “Federal Reserve must stay in its lane,” noting that the matter is still pending before the Supreme Court and deeming it “inappropriate” for him to weigh in on the subject.