Elizabeth Warren to call Jerome Powell “dangerous man” on Federal Reserve Board and oppose re-appointment

Senator Elizabeth Warren unleashed Federal Reserve Board Chairman Jerome Powell, calling him a “dangerous man” and calling him a “dangerous man” during the Senate Banking Committee hearing on the economic recovery after the COVID-19 pandemic on Tuesday. Announced that he opposes the second term.

Powell, who was named former President Trump, will expire in February. President Biden has indicated he will reappoint Powell in response to backlash from progressives such as Warren and New York Rep. Alexandria Ocasiocortes.

Warren argued that Powell undermined the U.S. banking system by rescinding financial regulations passed after the 2008 financial crisis.

“I came to Washington after the 2008 crisis and confirmed that such a thing would never happen again. I have serious concerns about your files, ”said the Massachusetts lawmaker. ..

“You have acted on several occasions to make our banking system less secure, and that makes you a dangerous man to run the Fed, and that is why you oppose your re-appointment.”

In 2019, the Fed weakened the rule that companies would get enough liquidity to meet their obligations by lowering banks’ liquidity requirements. The guidelines entered into force after the 2008 crisis.

Under Powell’s supervision in March 2020, the federal government intervened in the U.S. economy to mitigate the impact of COVID-19 on financial markets. This includes up to $ 2.3 trillion in loans to support households, employers, state and local governments.

Since taking office, Powell has also withdrawn or relaxed regulations during many other periods of financial crisis to promote economic growth.

“I know some people claim your deregulation is almost harmless. I do not agree. I think they are putting taxpayers at risk of hundreds of billions of dollars, ”Warren said. Noted.

She said reassigning him to work would put the U.S. economy at risk.

“Redesigning you means that over the next five years a majority of Republicans in the Federal Reserve, who will chair Wall Street deregulation, will once again cross the fiscal cliff. It means betting you won’t budge, ”Warren said. ..

“And I don’t think it’s a risk to take, because there are so many qualified candidates for this position.”

The White House has yet to announce its decision to re-elect Powell or choose an alternative.

Last month, a progressive group led by Ocasio Cortez and the rest of the Rashida Tribe and Ayanna Pressley team released a statement demanding that Biden not rename Powell.

“Under his leadership, the Federal Reserve has taken little action to mitigate the risks climate change poses to our financial system,” he added. In the aftermath of the Great Recession. “

According to the Wall Street Journal, he opposes Treasury Secretary Janet Yellen, one of the most prominent members of Biden’s economics team, in favor of Powell’s reappointment.

Yellen also testified with Powell at a hearing on Tuesday that the United States would run out of money around October 18 for the first time in history unless emergency measures were taken to raise or suspend the caps. debt. Issued a stern warning.

“It will be disastrous for the US economy, global financial markets and millions of families and workers,” Yeren warned the day after Senate Republicans blocked Democrats’ efforts to suspend debt restrictions. low.

Tuesday’s hearing took place the day after the announcement of their retirement by the two Fed chairmen, who were under ethical review of investment transactions.

Powell was compelled to defend the Fed’s image and impartiality, especially when Senator Raphael Warnock called the scandal a “blow” to the central bank.

Warnock asked Powell about the steps he was taking to protect the Fed’s “fairness”.

This is a law that prohibits FRB officials from holding individual shares by Democratic Senator Sherrod Brown, president of the Banking Commission, following some criticism shared at the start of the hearing. He said he plans to present.

Powell, who ordered a review of the Fed’s ethical rules earlier this month, said the central bank is also investigating transactions made by regional Fed chairmen, which are legal and comply with current ethical guidelines. He added that he confirmed it.

“Even though these transactions appear to be in accordance with existing rules, it indicates that the problem lies with rules and practices and that disclosure needs to be improved,” said Powell. “We are getting up right now and dealing with this. ”