HomeUS News updateJerome Powell has ‘failed’ as Fed chair

Jerome Powell has ‘failed’ as Fed chair

Sen. Elizabeth Warren, D-Mass., criticized Federal Reserve Chairman Jerome Powell in an interview with NBC News’ “Meet the Press” on Sunday, saying he has “failed” in his duties and called on him to do his part. Should not happen.

“He had two jobs. One is to deal with monetary policy. One is to deal with regulation. He has failed at both,” she said.

“Look, I don’t think he should be chairman of the Federal Reserve. I’ve said it publicly because I know how to say it. I’ve said it to everyone,” said Warren, who serves on the Senate Banking Committee. does. ,

Powell, first nominated by then-President Donald Trump in 2017, faced criticism for his handling of banking regulations following the collapse of Silicon Valley Bank.

Warren, who had been pushing for tighter banking regulations, said Powell “took a flamethrower to regulations” when Trump took office, adding that Trump gave Congress “the authority to loosen regulations even further”.

Warren said, “And then the CEOs of the banks did what we expected. They took risks that increased their short-term profits. They gave themselves huge bonuses and salaries and blew up their banks.”

A group of Democrats led by Warren and Rep. Katie Porter of California unveiled legislation last week to restore bank regulations that were undone in 2018 under the Trump administration — an effort she says will address the reason for SVB’s collapse.

At the time, Republicans in Congress pushed a bill – with support from some centrist Democrats – that eased Dodd-Frank financial regulations on medium-sized banks, from $50 billion to $250 billion in assets as “Too Big Two”. Fail” raised the threshold. The Warren-Porter bill, first reported by NBC News, would repeal that measure, but it faces a tough road to passage in Congress.

Some Democrats who voted for the 2018 bill are standing by their votes, joining Republicans in opposing more scrutiny for banks and arguing that the US still has existing resources to deal with the issue. There are ways under the law.

President Joe Biden renominated Powell as chairman of the Federal Reserve in November 2021. The decision was met with pushback from some progressives and some Democrats who argued that Powell was too hands-off as a banking regulator.

Around that time, Warren was a prominent opponent of Powell, calling him a “dangerous man” who attempted to undermine the nation’s banking system at a hearing in late 2021.

“I oppose him because of his views on regulation,” Warren said on “Meet the Press” on Sunday, and what he was already doing to undermine regulation.



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