Warren to Fed chair Powell: You’re a dangerous man
The armed services committee hearing isn’t the only entertainment at hand in the Senate this morning.
Over in banking, Senator Elizabeth Warren has called the chairman of the Federal Reserve, Jerome Powell, “a dangerous man” and vowed to oppose his renomination.
Warren said that under Powell the Fed had watered down post-financial crisis bank regulations and weakened the US banking system.
“Your record gives me grave concerns,” the Massachusetts Democrat said. “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.”
Powell did not respond.
Warren said deregulation could trigger a meltdown in financial markets similar to the one the US experienced during the 2008-09 financial crisis. She said Powell had been “lucky” that banks thus far had been able to avoid major problems.
“So far you’ve been lucky,” she said. “But the 2008 crash shows what happens when the luck runs out.
“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 been Fed chair since 2018 and Wall Street widely expects Joe Biden to renominate him when his term expires in February, despite opposition from Warren and other more liberal senators.
Today so far
Generals contradict Biden on what advice he received about Afghanistan