Sen. Elizabeth Warren (D-Mass.) Told Federal Reserve Chairman Jerome Powell during a Senate hearing Tuesday that he would oppose his rebuilding, citing many of his decisions, claiming that the big bank’s regulatory oversight of the Federal Reserve was weak.
“I came to Washington after the 200 crash to make sure it never happened again. Your record gives me deep concern. Repeatedly, you have worked to make our banking system less secure, and it has made you a dangerous man to lead the Fed, and that is why I will oppose your reconstruction, ”Warren said at the Senate Banking Committee hearing.
Warren suggested that Powell’s decision to change the stress test, which is designed to tell whether big banks could survive without taxpayers’ collateral, has weakened the banking system.
Warren said it became clear during the recent epidemic. “Those banks needed stimulus from taxpayers, and without the help of these taxpayers they would have lost up to 300 300 billion, which means they were in a very weak position to withstand the pressure,” Warren said.
He asked Powell if he regretted his decision to change the stress test.
“When banks fail stress tests, their distribution is limited,” Powell said in response. . ”
Warren said the question of whether Powell would be renamed n was like an “elephant in the room”. It would be a gamble because it is not certain that “a Republican chair in the Federal Reserve with a Republican chair, who has regularly voted in favor of deregulating Wall Street, will not drive this economy to another financial peak,” he said. “And with so many qualified candidates for this job, I don’t think it’s risky. I know some people argue that your regulatory actions are mostly innocuous. I do not agree. I think they have put taxpayers at risk for hundreds of billions of dollars.
Warren said he believes Powell’s decisions will eventually lead to a financial crisis like the one in 200.
“So far you are lucky. But the accident of 2008 shows what happens when fate ends, ”he said. “The seeds of the 2008 crash were sown many years ago by big regulators like the Federal Reserve who refused to rein in the big banks.”
Sen. Mike Rounds (RSD), who questioned Powell shortly after Warren, said he disagreed with the progressive senator and would vote to re-nominate the chair.
“Well, needless to say, Chairman Powell, I will probably disagree with my colleague and I appreciate you for the hard work you put in. And I definitely think you deserve to be re-nominated for the position you are in now and I look forward to working with you for the next few years, ”Roundes said.
In August, a group of progressives in the House called on President Joe Biden to replace Powell with someone who would take their climate change program further.
At a time when the Intergovernmental Panel on Climate Change is warning of the potential catastrophic and irreversible damage caused by a changing climate, we need a leader who will take bold and decisive action to address climate risk. Progressive House lawmakers, including Reps. DN.Y.).
In 2018, Powell was confirmed as chair with 84-13 votes in his favor.
This News Originally From – The Epoch Times