Senator Elizabeth Warren unleashed on Federal Reserve Chairman Jerome Powell, calling him a 'dangerous man' and announcing she'll oppose a second term during a Senate Banking Committee hearing on the economic recovery from the COVID-19 pandemic Tuesday.
Powell, who was nominated by former President Trump, will see his term expire in February. President Biden has indicated that he'd reappoint Powell, earning pushback from progressives like Warren and Rep. Alexandria Ocasio-Cortez of New York.
Warren argued that Powell weakened the US banking system by rolling back financial regulations that were enacted after the 2008 financial crisis.
'I came to Washington after the 2008 crash to make sure that nothing like that would ever happen again. Your record gives me grave concern,' the Massachusetts lawmaker 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 re-nomination.'
Senator Elizabeth Warren confronted Federal Reserve Chairman Jerome Powell on regulations he's eased since the 2008 financial crisis
In 2019, the Fed weakened rules that ensure that firms have adequate cash to meet their obligations by lowering liquidity requirements for banks. The guidelines were put in place after the 2008 crisis.
Under Powell's watch in March 2020, the Fed intervened in the US economy to mitigate repercussions from COVID-19 within financial markets, including up to $2.3 trillion in lending to support households, employers, and state and local governments.
Since his tenure began Powell has also rolled back or loosened a number of other financial crisis-era regulations in a bid to spur economic growth.
'I know that some argue that your deregulatory actions are mostly harmless. I disagree. I think they've put taxpayers at risk for hundreds of billions of dollars,' Warren said.
She said nominating him for the job again would put the US economy at risk.
Warren told Powell that re-nominating him is an economic risk that isn't worth taking
'Re-nominating you means gambling that for the next five years, a Republican majority of the Federal Reserve with a Republican chair, who has regularly voted to deregulate
