Texas Representative Pete Sessions (R) questioned Vice Chair of the Federal Reserve Michael Barr on what he perceived to be a lack of responsibility from the Federal Reserve.
“.@FinancialCmte warned about the effects of trillions in new spending and full-speed quantitative easing,” stated Rep. Sessions.
The Texas lawmaker continued by criticizing “aggressive supervision” and the current administration’s actions.
“The correct answer isn’t aggressive bank supervision — this Admin and its sluggish financial regulators must take responsibility for their reckless policy and spending.”
.@FinancialCmte warned about the effects of trillions in new spending and full-speed quantitative easing.
The correct answer isn’t aggressive bank supervision — this Admin and its sluggish financial regulators must take responsibility for their reckless policy and spending. pic.twitter.com/LUXP5kuoks
— Pete Sessions (@PeteSessions) May 16, 2023
The Texas congressman demanded accountability from the Federal Reserve and Treasury Secretary.
“The highest level of financial integrity comes from the Fed and the Treasury Secretary. At some point, somebody’s gotta accept responsibility that they were misled at the top of your organization,” said Rep. Sessions.
After being questioned by Sessions, Michael Barr responded with an explanation of what happened.
“I joined the Federal Reserve Board in July 2022, at a time when the Federal Reserve was clearly raising interest rates and had been raising interest rates for some time. My understanding…is that it was quite clear from the fall of 2021 that interest rates were gonna go up. The bank decided to…remove interest rates’ hedges that protected it in a rising interest rate environment. So, I think the findings are clear on that point,” explained Barr.
Sessions still remained doubtful and was insistent on someone taking responsibility for the failures of the Federal Reserve.
“Well, I remain skeptical, and I know that I’ve heard the testimony today…everything is OK. We’ve gone back and double-looked at everything. Nothing bad is going to happen. It’s all taken care of. My point would be, I think somebody needs to accept the blame. I fail to see that the advice given from the very top was, in fact, incorrect. Some of the down management decision making, including boards, was they…made decisions based on the top of the deck.”
“So, I’m not crying over spilled milk. There should’ve been some history to understand if you raise spending $3 trillion, and then do what has happened out of treasury you’re going to have a problem.”
In other news, Title 42 has officially ended and a new immigration bill has passed. House Resolution 2 (H.R. 2), also known as the Secure the Border Act, has passed the House and is on its way to the Senate.