Elizabeth Warren slams Fed Chair Jerome Powell for 'flamethrower' banking

Elizabeth Warren slams Fed Chair Jerome Powell for 'flamethrower' banking

Sen. Elizabeth Warren D-Mass took a shot at Federal Reserve Chair Jerome Powell recently for his inept handling of the responsibilities that were entrusted to him.

What Happened: Powell currently oversees monetary policy and regulation, but Warren said in a Sunday interview with NBC News Meet The Press that he has failed both of his responsibilities.

The senator said that he doesn't think he should be chairman of the Federal ReserveFederal Reserve. I have said it publicly as I know how to say it. I said it to everyone. Warren said Powell took a flamethrower to the regulations and, when former President Donald Trump took office, gave Congress the authority to dilute regulations even more. She explained that bank CEOs loaded up on risk to boost short-term profits.

She said they gave themselves huge bonuses and salaries and exploded their banks.

What should I do if the stock market crashes?

Why It is Important: Powell was nominated for the current post by Trump in 2017 and was sworn in for a second term in mid-May 2022.

Warren, who serves on the Senate Banking Committee, has been clamoring for stricter banking regulations. She proposed a bill to reinstate bank regulations that were repealed by the Trump administration last week, along with a group of Democrats, according to a report by NBC.

The banking crisis that began with the collapse of the Silicon Valley Bank and the downfall of Signature Bank continues to play out. Contagion fears have resulted in problems at other banks, including First Republic Bank FRC. The Fed and Treasury worked together with several of the nation's biggest banks to create a rescue package for First Republic Bank to stem the fallout.

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