As recent bank failures increase inflation, making everyday items exponentially more expensive, the need for change becomes more urgent. Senator Warren believes that those responsible must be held accountable, claiming that the current failure was due to the ineptitude of Powell and his team.
Daily Wire reports, Senator Elizabeth Warren called for a new Federal Reserve chairman on Sunday, criticizing Jerome Powell’s job performance.
On several Sunday talk shows, Warren accused Powell of taking a “flamethrower” to regulations on big banks. As a result of Silicon Valley Bank’s collapse, Warren called on the Federal Reserve and Congress to impose more regulations. In addition, she argued that Powell should not be chairman of the Federal Reserve.
Senator Warren also went on additional shows to discuss the same ineptitude that Jerome Powell is showing during this banking crisis.
Powell has been warning Americans for a while about the consequences of inflation.
NPR reports, in order to curb stubborn inflation, Fed chairman Jerome Powell warned recently that interest rates may need to be raised higher than previously expected.
Senate Banking Committee testimony comes after a series of economic indicators indicate the economy is running hotter than expected despite aggressive Fed action.
Powell told senators “Although inflation has been moderating in recent months, the process of getting inflation back down to 2% has a long way to go and is likely to be bumpy,”
To curb demand, the central bank has raised interest rates eight times in the last year. Although consumer spending and hiring appeared to cool off late last year, both rebounded in January, pushing prices higher.
Senator Elizabeth Warren has made her stance on Fed Chair Powell’s tenure clear, decrying corporate greed and a system of bailouts as the underlying cause of yet another failed bank. In a strongly-worded call for change, Warren cites the toll on the American economy by these abject failures, warning that inflation will become “uncontrollable” without extreme regulation reforms. With questions raised regarding an incompetent leader at the helm of a broken system, it is possible that corporate greed finally misplaced itself into an endeavor too expensive to ignore – its own bankruptcy. The conversation around this corporate mismanagement has certainly caused us all to pause and reflect on whether or not Mr Powell is indeed up to the task of providing stability and security for the United States economy against corporate and regulatory ineptitude.
