Senators Rick Scott, Elizabeth Warren Join Federal Reserve Oversight Bill

Senators Rick Scott (R-Florida) and Elizabeth Warren (D-Massachusetts) unveiled legislation on Wednesday to increase oversight of the Federal Reserve after two high-profile bank failures Did.

invoice An independent Inspector General appointed by the President and confirmed by the Senate will be needed to oversee the Federal Reserve and the Consumer Financial Protection Agency.

The current Inspector General of the Federal Reserve will report to the Federal Reserve.

“The Fed’s failure to adequately identify and prevent the shocking failures of Silicon Valley and Signature banks makes it clear that we cannot wait any longer for major changes at the Fed. That’s right,” Scott said in a release announcing the bill. “The Federal Reserve, the world’s largest and most powerful central bank, has a truly independent inspector general investigating it, an independent agency fighting for the transparency and accountability that citizens need. It would be outrageous not to.”

Warren, who has been an outspoken critic of Federal Reserve Chairman Jerome Powell and his banking leadership, agreed with the call for the Federal Reserve’s independent inspector general.

“The recent bank failures and regulatory failures by the Fed underscore the urgent need for a truly independent inspector general and hold Fed officials accountable for their negligence and misconduct,” Warren said. mentioned in the release.

Warren earlier this week accused Powell of curtailing regulations she said were key to preventing irresponsible banking behavior in the industry since Powell took over the bank’s top position in 2018. bottom.

“donald trump Warren ran for president in an interview on CBS’s “Face The Nation” saying he would ease restrictions on those banks. “And Jerome Powell literally used a flamethrower against these regulations, making them less and less effective.”

scott said in a letter to Powell The Fed announced on Wednesday that it had failed to meet its obligations to regulate large financial institutions.

“For too long, the Federal Reserve has used its claim to independence to obstruct Congress and the American people, but is unable to adequately regulate and oversee the large financial institutions under its control. Either I didn’t want to,” Scott wrote.