WASHINGTON, D.C. – Today, Senators Rick Scott and Elizabeth Warren introduced legislation to require a presidentially-appointed and Senate-confirmed Inspector General (IG) to the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (CFPB). Currently, the IG is appointed by, and reports directly to, the Federal Reserve and CFPB, which poses serious conflicts of interest. The Senators also sent a letter to Federal Reserve Chairman Jay Powell outlining the need for an independent Inspector General and structural changes to the position as the former Fed Board-appointed Inspector General Mark Bialek failed to hold Federal Reserve employees accountable amid ethics concerns, insider trading, and bank failures.

Senator Rick Scott said, “The Federal Reserve has been wildly unaccountable for years under Jay Powell’s leadership, who has overseen regulatory failures, allegations of insider trading, and unethical practices at the Fed that have been overlooked and enabled by the Board’s hand-picked Inspector General. The Federal Reserve is the world’s largest and most powerful central bank, yet the current Inspector General directly reports to the Fed’s Board, presenting a clear conflict of interest with a perverse pay structure that enables issues to go unchecked for too long at the expense of the American people. That’s insane. We need significant changes at the Federal Reserve to bring the transparency and accountability that the American people deserve. Our bill will take a huge step forward in fixing the Federal Reserve by implementing a truly independent, Senate-confirmed IG at the Fed that will work on behalf of the American people, not Jay Powell.”

Senator Elizabeth Warren said, “The Fed makes critical decisions that impact our entire economy—and bank collapses, regulatory failures, and the culture of corruption at the Fed have underscored the urgent need for a truly independent Inspector General to hold Fed officials accountable. I’m glad to partner with Senator Scott on this bipartisan bill to deliver oversight the American people deserve.”

Read the bill HERE and the full letter HERE.

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