Fed chair nominee Kevin Warsh discloses assets worth over US$190 million
He will be among the wealthiest to hold the Fed chair position
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[WASHINGTON] Kevin Warsh, President Donald Trump’s nominee for Federal Reserve chair, has disclosed assets with his wife Jane Lauder that total at least US$192 million, though the actual figure for their holdings is certainly much higher.
The figures are part of financial disclosures submitted by Warsh ahead of his confirmation hearing for Fed chair that is scheduled for next week. They underscore that Warsh, who previously served on the US central bank’s Board of governors from 2006 to 2011, will be among the wealthiest to hold the Fed chair position.
In his ethics agreement submitted with the disclosures, Warsh has promised to divest from certain holdings and to resign from board positions and other roles, including as a director at United Parcel Service. Warsh is married to Lauder, the daughter of prominent Republican donor Ronald Lauder – the son of makeup scion Estee Lauder.
While nominees disclose the value of their assets in broad ranges, with the higher end peaking at US$50 million, their spouses use different ranges, topping out at those listed as over US$1 million. Two of Warsh’s assets – titled the Juggernaut Fund – each were valued at more than US$50 million, while his wife listed more than 30 assets in the US$1 million plus category, including her shares in Estee Lauder Cos.
Other public data on Jane Lauder’s holdings illustrate how vague the government disclosures can be.
Lauder currently holds US$1.5 billion in Estee Lauder stock directly and through two family trusts, according to the Bloomberg Billionaires Index. She has also collected more than US$450 million in lifetime dividends on those holdings and has sold more than US$83 million in stock since 2003, according to the index.
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Warsh pledged in his paperwork to recuse himself from policy decisions that might affect Estee Lauder.
“I will not participate personally and substantially in any particular matter that to my knowledge has a direct and predictable effect on the financial interests of the Estee Lauder Companies unless I first obtain a written waiver,” Warsh wrote.
Investment restrictions
Warsh and his wife will have to abide by personal investing rules that apply to all Fed policymakers. Those rules were significantly tightened in 2022 after a series of embarrassing revelations of trading by Fed officials.
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The new rules prohibit officials from purchasing individual stocks, require them to obtain prior approval for purchases and sales of securities and ban them from transactions during periods of heightened financial stress, among other measures. Policymakers are also prohibited from holding stakes in financial firms regulated by the central bank.
The assets of current Fed chair Jerome Powell were estimated at more than US$100 million when he was nominated for his first term in 2017. Before joining the Fed he had worked for the private equity firm Carlyle Group.
His predecessor, Janet Yellen, held assets along with her economist husband George Akerlof of US$5.3 million to US$14.1 million, according to disclosures filed in 2014, the year she became chair. BLOOMBERG
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