Sen. Elizabeth Warren on Tuesday vowed to oppose the renomination of Federal Reserve Chairman Jerome Powell — accusing him of being a “dangerous man” who has made the US banking system much less protected throughout his tenure.
“Your record gives me grave concerns. Over and over, you have acted to make our banking system less safe, and that makes you a dangerous man to head up the Fed, and it’s why I will oppose your renomination,” the Democrat from Massachusetts mentioned throughout a listening to earlier than the Senate banking committee.
Warren argued that underneath Powell, the Fed has weakened oversight of banks, together with by adjusting financial institution stress exams, the Volcker Rule and banks’ liquidity necessities.
Powell — a Republican appointed by former President Donald Trump — disagreed with Warren’s characterization of these strikes as deregulatory, however added that it’s “fair game” to look at the Fed’s actions underneath his management.
He didn’t reply to Warren’s remark that she is going to oppose his renomination.
However, Powell’s pandemic-response efforts and his deal with jobs has received reward from Biden administration officers and coverage analysts within the broader Democratic neighborhood.
Quite a lot of highly effective Democrats, together with Sens. Dick Durbin, Jack Reed and Richard Blumenthal, have all hailed Powell’s response to the pandemic, although Reed and Durbin stopped in need of committing to renominate him.
Under Powell, the S&P 500 has additionally surged about 60 p.c, in step with the index’s acquire throughout Yellen’s 4 years answerable for the Fed, when Wall Street prolonged its recovery from the 2008 monetary disaster into a virtually decade-long bull market.
Powell has served since 2018 and his time period expires in February. President Joe Biden has not but dedicated to renominating him as Fed Chair.
The president can nominate a Fed chair from among the many sitting governors for four-year phrases. The Senate should then verify the nominee.
Powell was confirmed by a snug margin for his present time period, with 84 senators in favor.
Some different far-left politicians, together with Reps. Ayanna Pressley and Alexandria Ocasio-Cortez, have additionally voiced opposition to his renewed tenure however Warren is now the highest-ranking politician to achieve this.
Warren went on to say that Powell’s deregulatory efforts could lead on to one other calamity just like the one seen within the wake of the 2008 collapse of the housing market.
She claimed Powell is “lucky” that banks have been in a position to keep away from main issues, regardless of severe incidents just like the implosion of Archegos Capital Management.
“So far you’ve been lucky. But the 2008 crash shows what happens when the luck runs out,” she mentioned. “The seeds of the 2008 crash were planted years in advance by major regulators like the Federal Reserve that refused to rein in big banks. I came to Washington after the 2008 crash to make sure nothing like that would ever happen again.”