Powell Takes Democratic Regulatory Fire, Anti-Inflation Ammo from GOP
Signaling a tough challenge for a second Powell term, Senate Banking Chairman Brown (D-OH) today said, “It’s time to try something different,” also joining Sen. Warren (D-MA) lambasting Mr. Powell’s role in what they characterize as risky big-bank regulatory relief. Mr. Powell sought to defend himself by saying that Fed actions have not “weakened” big-bank capital, but it is unclear if this will help his appointment or if this pressure further delays any action on the SLR senior Democrats will decry. Much in today’s hearing revisited issues explored at yesterday’s HFSC session (see Client Report FEDERALRESERVE62), with Republicans strongly disputing the extent to which inflation will prove transitory and fearing the Fed will not be able to act quickly enough if it is not. Mr. Powell made it still more clear that he is agnostic on the need for CBDC, saying for the first time that he would wish to see a strong Congressional and social mandate before initiating a U.S. digital currency.