Federal Reserve Chair Kevin Warsh addressed the U.S. House of Representatives Financial Services Committee on July 14, 2026, stating that any modifications to the Fed’s balance sheet policies will be communicated well in advance to both Congress and financial markets. He explained that any change would be previewed, explained, and debated before implementation, ensuring that the committee and the broader market receive adequate notice.
Warsh highlighted that the Fed’s balance sheet is an integral component of monetary policy and asserted that the central bank should remain separate from fiscal policy considerations. While acknowledging that his views on the large balance sheet are well known, he refrained from prejudging decisions that will be made by a newly established Fed balance sheet task force.
In his remarks, Warsh quoted, “I want to assure you that if there were a change in balance sheet policy, that we would preview it, explain it, debate it, and no changes in balance sheet policy would happen without good advance notice to the likes of this committee and broadly financial market.”
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