Senator Elizabeth Warren Blamed Federal Reserve Chair Jerome Powell for part of the latest banking crisis, saying he “took a flamethrower on the regulations” in his strongest criticism yet following the collapse of the Silicon Valley bank.
The Massachusetts Democrat’s claims came on ABC’s This Week on Sunday when she aimed at the Trump-era bench Deregulations that relaxed rules that included risk management standards and stress testing requirements.
Warren: Fed Chair Powell ‘had two jobs’ and ‘failed both’
Warren has heavily criticized Powell for this in the past The Fed’s aggressive fight against inflation by raising interest rates, Warning that high interest rates could lead to higher unemployment rates.
“Raising interest rates does nothing to solve these problems. All the chairman wants is to put millions of people out of work,” Warren said on NBC’s Meet the Press.
With the recent collapse of the SVB, Warren expressed little optimism Powell’s ability to serve as Fed Chairman.
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“You see, my views on Jay Powell are well known at this point. He had two jobs. One of them is monetary policy. You have to deal with regulation. He failed at both.”
Warren calls for an independent investigation into the Federal Reserve
The Fed announced this on Monday that it will conduct an internal review of its Supervision and regulation of Silicon Valley Bank. Warren slammed the probe, calling for an independent, third-party investigation into ABC’s This Week.
“I am calling for an independent investigation into the Fed and the entire regulatory system. The Fed can’t just conduct its own investigations,” Warren said.
Related: Biden, DNC, will return political donations from Silicon Valley Bank executives
What happened to the SVB?
Silicon Valley Bank, a bank closely associated with technology start-ups and venture capital, collapsed last Friday on a bank run partly due to the Federal Reserve’s rate hike and the decline in tech stocks.
This article originally appeared on USA TODAY: Warren slams Fed Chair Jerome Powell over Silicon Valley bank collapse
Source : news.yahoo.com