Warren Launches Fiery Anti-Powell Fight; Brown Non-Committal, But Critical

Although today’s Senate Banking hearing with Chairman Powell and Secretary Yellen was largely taken up by the debt ceiling, Sen. Warren (D-MA) made it very clearly that progressives will mount an aggressive campaign against Mr. Powell, calling him a “dangerous” man. Chairman Brown (D-OH), whose position is perhaps most important, said nothing about the renomination even as he blasted the Fed under Mr. Powell for what he called his pro-Wall Street policies.  Sen. Brown also criticized the Fed for “rubber-stamping” mergers and market-friendly policies. Ranking Member Toomey (R-PA) may have changed his view on CBDC, now expressing interest in a “properly-designed” CBDC.  Responding to Sens. Brown and Warren, Mr. Powell resisted all suggestions that stress tests have been weakened but said that changing current rules is “fair game” going forward.  Asked to name her top systemic-risk worry, Secretary Yellen cited open-end funds and shadow banks.