Elizabeth Warren says Fed chair 'has weakened regulation'

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Elizabeth Warren says Fed chair 'has weakened regulation'

The Senator Elizabeth Warren praised the role of Federal Reserve Governor Jerome Powell in her approach to financial regulation on Wednesday while criticizing Committee Chairman Lael Brainard for being too protective of large financial institutions.

'My concern is that over and over he has weakened the regulation here, she said of David Westin in Bloomberg TV's 'Balance Of Power with Powell. 'We need someone who understands and uses the regulatory tools and the monetary policy tools to keep our economy safe. The Massachusetts Democrat is a member of the banking committee and a key voice in discussions ahead of a decision by President Joe Biden on who should direct the nation's central bank. While stopping shy of endorsing Brainard for the top job, she touted her many dissents to federal moves to loosen regulations.

Lael Brainard's dissents in many of the deregulatory actions the Fed has taken, and I have to say they are strong and powerful dissents, Warren said. 'She makes a good case for how it is the job of the Federal Reserve to be the person on that beat and to make sure the largest financial institutions are not putting our economy at greater risk.

Some White House aides are eyeing Brainard as a possible chairman who - while remaining independent - already fully supports Biden's economic agenda, though Powell enjoys wide support within the administration, according to people familiar with the matter.

No decision is expected before September at the earliest.

Warren reiterated her focus on the top job at the Federal Reserve, rather than just other posts like vice-chair, which some have speculated could be the landing spot for Brainard if Biden nominates Powell for another term.

'The problem was the chair of the Federal Reserve is where the power is concentrated, she said. 'It is the Chair who decides what policies go forward. The chair decides when to call a vote.