Elizabeth Warren, a senior senator in the Democratic Republic of Massachusetts, said Tuesday she would oppose Jay Powell’s approval as chair of the Federal Reserve, calling him a “dangerous man” to lead a major US bank.
Warren’s second-term opposition to Powell has a profound effect on his hopes of remaining in the Fed, as it will make it harder for President Joe Biden to change him without facing any harm from the left Democratic Party.
Powell’s term expires in February 2022 and Biden must make a decision soon.
Warren has been challenging Powell’s views on banking rules, which he has chosen as a reason why he should not have more time as a Fed official.
“I came to Washington after the 2008 accident to make sure it didn’t happen again. Your writing is of great concern to me, “Warren told Powell at a banking committee meeting in the Senate.
“Over and over again, you have taken steps to protect our banks. And that makes you a dangerous person to start a Fed, which is why I challenge your reputation, “he said.
Warren described a number of incidents in which the Fed radically changed its monetary policy, including the idea of a central bank to change the requirements in some Wall Street organizations.
He also mentioned the explosion of Archegos Capital earlier this year, which caused banks to suffer for the sale of large-scale projects set up by the family office.
Powell said the Fed has “learned its lessons” since then.
Although Warren is now publicly debating for Powell to run for a second term in the Fed, a number of hardworking Democrats are backing him for another four years in office, on the pretext of ensuring stability in the financial crisis during the financial crisis.
Even some progressive Democrats are pleased with Powell’s monetary policy stance, as the process of curbing inflation is increasing and continuing to seek full-time employment compared to previous Fed leaders.
Warren’s comments come shortly after the Fed’s turmoil, with two officials stepping down on Monday following a review of the Fed’s financial intervention last year to protect against the crisis in the early days of the epidemic.
Robert Kaplan, President of the Dallas Fed and Boston Rosengren of Boston was found to be an avid financier, sometimes holding many positions in companies and other financial institutions.
Earlier this month, Powell announced that he would review the central bank’s decision to participate in the financial markets and on Tuesday called for stricter laws.
He also said that the appearance of a heated dispute was “unacceptable”.