Tags: Warren | Manchin | Fed | governor

Sens. Warren, Manchin: No More 'Wall Street Insiders' for Fed Board

By    |   Tuesday, 18 November 2014 11:45 AM

It's not just tea party Republicans who are criticizing the Federal Reserve. Democratic Sens. Elizabeth Warren, a Massachusetts liberal, and Joe Manchin, a West Virginia moderate, have complaints too.

"We're concerned that the Fed — our first line of defense against another financial crisis — seems more worried about protecting Wall Street than protecting Main Street," they write in The Wall Street Journal.

The solution: President Obama needs to change his approach in his selections for the two open Fed board seats, Warren and Manchin say.

"The five sitting governors have a variety of academic and industry experience, but not one came to the Fed with a meaningful background in overseeing or investigating big banks or any experience distinguishing between the greater risks posed by the biggest banks relative to community banks," they write.

"By nominating people who have a strong track record in these areas and who have a demonstrated commitment to not backing down when they find problems, the administration can show that it is taking the Fed's supervision problem seriously. Nominating Wall Street insiders for the Board of Governors would send the opposite message."

Meanwhile, though many experts have expressed concern that the Fed's massive easing program is causing bubbles in financial markets, Fed Governor Jerome Powell doesn't see it that way.

"I would say things are fully priced out there. I don't see bubble territory, and we don't see leverage building up," he tells CNBC.

"It's something we watch carefully, but I can't make a case that we're at risk of significant financial instability."

The S&P 500 index has more than tripled from its March 2009 low.

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It's not just tea party Republicans who are criticizing the Federal Reserve. Democratic Sens. Elizabeth Warren, a Massachusetts liberal, and Joe Manchin, a West Virginia moderate, have complaints too.
Warren, Manchin, Fed, governor
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2014-45-18
Tuesday, 18 November 2014 11:45 AM
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