Hagerty Seeks Commitment from Chair Powell that the Federal Reserve will Remain Free of Politically-Motivated Decisions

January 11, 2022

Chair pledges that the Fed will continue to work ‘collaboratively’ and to strive for ‘consensus on issues’

WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, today questioned Federal Reserve Chairman Jay Powell, who President Joe Biden has nominated for a second term, during Powell’s confirmation hearing.

In addition to questions about the inflationary effects of Democrats’ spending sprees and the Fed’s Quantitative Easing, Hagerty sought Chair Powell’s assurance that the Federal Reserve is not vulnerable to “politically-motivated hijacking” like what the FDIC has just experienced.

“There at the FDIC, a five member board overturned 88 years of tradition and independence, with Biden political appointees led by CFPB Director Rohit Chopra, forcing out the FDIC Chairman before her five-year term was up, strictly for partisan reasons. This incident causes me to worry that an activist block at the Federal Reserve Board could sideline you. They could exert their authority while excluding the full FOMC membership,” Hagerty said.

Responding to Hagerty, Chair Powell said, “we do have a history at the Fed of working collaboratively and coming together and, and getting consensus on issues. That certainly is my intention, that is my nature, and I will work hard to make sure that things stay that way.”

Hagerty indicated in November that he would support Chair Powell for a second term, saying “I believe stability at the Fed is in the best interest of workers, taxpayers, and our markets.”

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