Lawmakers Intensify Push to Rein in Fed

Janet Yellen sparred with Republican lawmakers in the most heated exchange in her yearlong tenure as Federal Reserve chair, highlighting the central bank’s exposure to growing demands for greater oversight from Congress.

In testimony on Wednesday before the House Financial Services Committee, Yellen forcefully rejected accusations from Republicans that she’s unaccountable to Capitol Hill and too closely aligned with the White House and Democrats.  “The Fed already has been completely immersed and guided by partisan politics,” said Scott Garrett, a New Jersey Republican who has introduced one of the bills this year to give Congress more control over the Fed and curb its powers.

Yellen called that a “complete mis-characterization.”  Republicans want to rein in the Fed’s expanded oversight of the financial industry while limiting its aggressive monetary policy. Yellen’s challenge is to push back against proposals that include Senator Rand Paul’s “Audit the Fed” bill, while trying to avoid damaging political fights.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.