Powell’s congressional hearing was criticized by Senator Warren as a dangerous man and should not be re-elected as Fed chairman
News from the Financial Associated Press (Shanghai Editor Xia Junxiong)On Tuesday, local time, Fed Chairman Powell attended the hearing of the Senate Banking Committee. Powell still adhered to his usual dovish stance, talking about the central bank’s digital currency, and responding to the recent controversy of the Fed’s senior officials in stock speculation.
Powell said that although the economy has almost passed the test of the debt reduction plan, it is still a long way from achieving the maximum employment standard, which is a key indicator of the Fed’s interest rate hike.
During the inquiry session, Republican Senator Patrick Toomey said that he was curious about the potential benefits of central bank digital currencies, but was also worried about privacy and other possible issues.
Powell responded that if the central bank’s digital currency can be supported by broad consensus and Congressional legislation, it will be the most ideal situation.
Boston Fed Chairman Rosengren and Dallas Fed Chairman Kaplan announced their resignations on Monday. Earlier media reports stated that Kaplan and Rosengren will participate in a large number of stock transactions in 2020. As soon as the news was exposed, it caused an uproar and was forced to resign twice under external pressure.
In response, Powell said that the Federal Reserve is reviewing the transactions of regional chairpersons to ensure that they comply with central bank regulations. Powell added that although these transactions appear to comply with existing rules, these rules will also be reviewed and improved.
Warren criticized Powell as a dangerous man
Powell’s congressional testimony was announced on Monday, and his speech was not unexpected, but Democratic Senator Elizabeth Warren relentlessly opened fire on Powell at the meeting, which became the biggest highlight of this hearing.
Powell’s term of office will end in February next year, and US President Biden has not yet decided whether to appoint him to continue as the chairman of the Federal Reserve. Although Wall Street generally expects that Biden will re-nominate Powell, some liberal senators oppose Powell’s re-election. Warren is one of the representatives.
Warren said on Tuesday that she would vote against Powell’s re-election as Fed chairman and called him a dangerous man to lead the Fed.
Warren said: “Your record worries me very much. You have made our banking system insecure time and time again. It is dangerous for you to be chairman of the Federal Reserve. That’s why I oppose your nomination.” It is worth mentioning. The thing is, although Warren’s words are fierce, Powell did not respond to her criticism.
Warren pointed out that deregulation may trigger another disaster, as the United States experienced during the 2008 financial crisis. The banking industry needs assistance from the Federal Reserve during the epidemic, but deregulation has also exacerbated the dangers facing the financial system.
Warren said that Powell has been lucky so far because the bank is currently able to avoid major problems, but the 2008 crash showed that disasters will happen when luck runs out.
Warren emphasized that the seeds of the 2008 financial crisis were planted by the Federal Reserve and other major regulatory agencies in the previous years. These agencies refused to restrain the big banks. She came to Washington after the financial crisis to ensure that similar things would not happen again. happen.Return to Sohu to see more
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