Massachusetts progressive Democratic Senator Elizabeth Warren opposed the appointment of Jay Powell as chairman of the Federal Reserve Board on Tuesday, calling him a “dangerous man” heading the U.S. Central Bank. is.
Warren’s opposition to Powell’s second term makes it more difficult for President Joe Biden to nominate him without facing a Democratic left-handed backlash, so his hopes of staying at the Fed’s steering. A party that gives a big blow to.
Powell’s current term ends in February 2022, and Biden must make a decision shortly.
Warren has long criticized Powell’s attitude towards banking regulation. That’s why she cites why he’s not worth spending more time as the head of the Federal Reserve Board.
“After the 2008 crisis, I came to Washington to prevent that from happening again. Your records raise me serious concerns,” Warren said in a Senate Banking Commission hearing. I told Powell at the meeting.
“You have acted many times to make our banking system less secure, and it makes you a dangerous man to lead the Fed, and that’s why I disagree with your recommendations. “She said.
Warren highlighted several cases where the Fed eased financial regulations, including the central bank’s decision to amend the liquidity requirements of certain Wall Street financial institutions.
She also flagged the blast of Arquegos Capital earlier this year. It saw banks suffering due to the collapse of large-scale leveraged transactions by the Family Office.
Powell said the Fed “learned lessons” from the episode.
Warren is currently openly opposed to Powell’s second bid on the Federal Reserve Board, but many because it ensures the stability of monetary policy decisions in the event of a major economic turmoil. Moderate Democrats have supported him for another four years. Pandemic.
Even some progressive Democrats support Powell’s approach to monetary policy, given a more tolerant approach to rising inflation and a stubborn pursuit of full employment compared to former Fed chiefs. I am.
Warren’s comment came on Monday after two senior officials scrutinized trading activity during the Fed’s aggressive intervention in financial markets last year, following a cataclysm in the Fed’s leadership. I resigned. Early pandemic.
The Federal Reserve Bank of Dallas president Robert Kaplan and Boston’s Eric Rosengren were active investors, sometimes holding significant positions in the stocks and funds of certain companies.
Earlier this month, Powell announced a comprehensive review of the central bank’s ethical guidelines surrounding the participation of senior officials in financial markets, supporting the tightening of those rules on Tuesday.
He added that the emergence of conflicting interests was “clearly unacceptable,” and the Fed scrutinized the deals made by Rosengren and Kaplan to ensure they were in compliance with current guidelines and legislation. He said he was doing it.
Elizabeth Warren, Jay Powell Opposes Second Federal Reserve Board’s Term of “Dangerous Man”
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