The Furies versus the Fed
Late last week, Ranking Member Brown (D-OH) led senior Democrats in sending two astonishing letters to FRB Chairman Powell and Vice Chair Quarles. Going beyond criticism of recent Fed regulatory rewrites, the letters essentially accused the vice chair of reckless indifference to the lives of most Americans and the safety of the financial system on which they depend. The Powell letter waved an iron fist beneath a thin velvet glove – the senators were more courteous to Mr. Powell, but told him in no uncertain terms that their tolerance of Fed monetary policy is ebbing fast. Once, issues such as the big-bank Tier 1 leverage ratio – the specific battle cry of these letters –were not just obscure, but fought out between allies of big or small banks with little regard to political party.
