Warsh disclosed his first round of asset sale plans before his swearing-in, but the disclosure document did not specify to whom these assets were sold.

Written by: He Hao

Source: Wall Street View

Incoming Federal Reserve Chairman Kevin Warsh disclosed his first round of asset sale plans on Tuesday local time before his swearing-in, but the disclosure document did not specify to whom these assets were sold.

In a form from the Office of Government Ethics, Warsh listed the names of the assets he holds, but did not provide sale amounts. At April's nomination confirmation hearing, Warsh, who is expected to be the wealthiest chairman in Federal Reserve history, stated that he would ensure his asset holdings comply with the ethical rules of the U.S. government and the Federal Reserve.

His form listed the sale of an investment named "Juggernaut Fund L.P." In the financial disclosure form submitted prior to last month's nomination confirmation hearing, he listed two entries for the fund, with a total value of at least $100 million.

Warsh also disclosed the sale of several other assets and one asset divested by his wife.

This soon-to-be Federal Reserve leader is scheduled to be sworn in on Friday, succeeding current chairman Jerome Powell. Powell plans to remain a board member to address the tensions between the Federal Reserve and the Trump administration.

Planned Sales

Warsh's disclosure was expected according to an agreement reached with the U.S. government to align his wealth with current ethical rules. The identity of the individuals or entities that purchased these assets may become a topic after Warsh takes office, as some Democrats have expressed concerns about potential buyers.

On April 21, Warsh told members of the Senate Banking Committee, "To prevent questions about my independence and clarity of my financial records, I agreed to divest almost all of my financial assets."

Warsh stated that after completing the required asset divestiture, as Federal Reserve Chairman, he would have almost no financial assets, with his wealth held almost entirely in cash.

Warsh's financial disclosure report last month indicated that he holds at least $100 million in various investments, many of which he declined to disclose due to confidentiality agreements.

According to his April disclosure, the Juggernaut investment listed for sale on Tuesday previously could have generated over $10 million in income for Warsh annually.

During the nomination confirmation hearing, U.S. Senator Elizabeth Warren expressed concerns about who might purchase Warsh's assets and whether this move could create conflicts of interest.

The Federal Reserve's ethical rules were formally established in early 2022 and are among the strictest in the U.S. government. These rules were tightened following a series of departure controversies involving several Federal Reserve officials due to multiple investigations by the Inspector General.

The Federal Reserve rules strictly limit the types of assets officials can hold and the manner in which funds can be moved. These regulations are designed to ensure the public believes that policymakers operate in the public interest. These rules also apply to immediate family members.