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EconomySen. Warren calls Fed Chair Powell a 'dangerous man,' says she will...

Sen. Warren calls Fed Chair Powell a ‘dangerous man,’ says she will oppose his renomination

Sen. Elizabeth Warren charged Tuesday that Federal Reserve Chairman Jerome Powell has led an effort to weaken the nation’s banking system, and she vowed to oppose his renomination.

In remarks made throughout a listening to earlier than the Senate Banking Committee, the Massachusetts Democrat cited a number of cases the place she mentioned the Powell Fed has watered down post-financial disaster financial institution laws.

Sen. Elizabeth Warren (D-MA) questions Treasury Secretary Janet Yellen and Federal Reserve Chairman Powell throughout a Senate Banking, Housing and Urban Affairs Committee listening to on the CARES Act, on the Hart Senate Office Building in Washington, DC, U.S., September 28, 2021.

Kevin Dietsch | Reuters

“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,” Warren mentioned.

Powell didn’t reply to Warren’s remark that she will oppose him.

Warren mentioned deregulatory strikes might trigger one other calamity the likes of which the U.S. noticed throughout the 2008-09 breakdown of Wall Street establishments.

She referred to as Powell “lucky” that banks up to now have been capable of keep away from main issues, citing the Archegos Capital Management collapse and the banking business’s collective want for Fed help throughout the coronavirus pandemic as risks to the system exacerbated by deregulatory strikes.

“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.”

Powell has served since 2018 and his time period expires in February. Wall Street extensively expects President Joe Biden to renominate Powell, although Warren and different extra liberal senators are seemingly to supply some resistance.

Chair of the Federal Reserve Jerome Powell seems earlier than a Senate Banking, Housing and Urban Affairs Committee listening to on the CARES Act, on the Hart Senate Office Building on September 28, 2021 in Washington, DC.

Matt McClain | AFP | Getty Images

Even if he does search to present Powell one other time period, Biden will have a likelihood to remake the Fed.

Randal Quarles, the present vice chair answerable for supervision, will see his time period expire in October, and present Fed Governor Lael Brainard, who favors a stronger regulatory hand, has been given frequent point out as a potential alternative.

Vice Chairman Richard Clarida will see his time on the Federal Reserve Board of Governors expire in January, and there stays one other emptiness on the board.

Sen. Robert Menendez, D-N.J., grilled Powell throughout the listening to on the shortage of range on the central financial institution. Biden will face strain to supply a various set of nominees for the Fed vacancies.

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