WARSH: 'WE DON'T WANT TO BE IN THE BAILOUT BUSINESS'

@yahoofinance

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Summary

During a hearing, Kevin Warsh states that the Federal Reserve does not want to be in the business of bailouts, including for cryptocurrency. He clarifies that while they aim to mitigate risks, they do not want to be in a position to bail out any entities, including crypto.

Transcript

can you assure us- that you will not- be bailing out stablecoin and cryptocurrency?nSo I don't wanna... I can be more broadly than that. We do not wanna be in the business, full stop. But your predecessor did provide a liquidity function for stableco- uh, for money market funds. If God forbid we faced a similar circumstance in the crypto world, would you bail them out?nSo I, I wanna be very clear, everything we can to mitigate those extraordinary risks, uh, if and when they were to come in the next four years. We wanna be in a position we're not bailing out anybody, including crypto.