Senator Warren Brands Jerome Powell As A Failure: 'I Don't Think He Should Be Chairman Of The Federal Reserve' - First Republic Bank (NYSE:FRC)

Sen. Elizabeth Warren (D-Mass) recently took a shot at Federal Reserve Chair Jerome Powell for his inept handling of the responsibilities that were entrusted to him.

What Happened: Powell currently oversees monetary policy and regulation, but Warren said in a Sunday interview with NBC News’ “Meet The Press” that “he has failed at both” responsibilities. 

“Look, I don’t think he should be chairman of the Federal Reserve,” the senator said. “I have said it as publicly as I know how to say it. I’ve said it to everyone.”

Warren said that Powell “took a flamethrower to the regulations,” and, when former President Donald Trump took office, gave Congress the authority to dilute regulations even more. It was then that bank CEOs loaded up on risk aimed at boosting short-term profits, she explained.

“They gave themselves huge bonuses and salaries and exploded their banks,” she added.

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Why It’s Important: Powell was nominated for his current post by Trump in 2017 and was sworn in for a second term in mid-May 2022.

Warren, who serves on the Senate Banking Committee, has been clamoring for stricter banking regulations. As recently as last week, she, along with a group of Democrats, proposed a bill to reinstate bank regulations that had been repealed by the Trump administration, NBC reported.

Meanwhile, the banking crisis that began with the collapse of the Silicon Valley Bank and subsequently the downfall of Signature Bank continues to play out. Contagion fears have led to problems at other banks, including First Republic Bank FRC. To stem the fallout, the Fed and Treasury worked with several of the nation’s biggest banks on a rescue package for First Republic Bank.

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