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US Legislators Criticize Perceived Fed Partisanship

US Legislators Criticize Perceived Fed Partisanship

by Starling Insights

Starling Insights Editorial Board

Feb 19, 2025

Observations

At a hearing regarding the US Federal Reserve's Semi-Annual Monetary Policy Report last week, French Hill, Chairman of the House of Representatives Financial Services Committee, criticized the Fed's regulatory and supervisory actions under the Biden administration, arguing that it “took serious liberties with its independence.”

"In law, the Fed Vice Chair for Supervision's role is to 'develop policy recommendations' that are then brought to the Board of Governors for consideration, not to develop partisan proposals without wider input from the Board of Governors and the public," Hill said while addressing Fed Chair Jerome Powell. “In my estimation, over the years, you and the Board have been too deferential to the statutory Vice Chair of Supervision.”

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