Federal Reserve Chair Addresses Treasury Payment System, Musk's Involvement
Federal Reserve Chair Jerome Powell affirmed the integrity of the Treasury Department's payment system amidst concerns raised by Elon Musk's access to it. Powell stated, "I believe it is safe."
Powell emphasized the system's critical role and the Fed's commitment to its resilience. He denied knowledge of any attempts by Musk to access the Reserve.
Some Democratic lawmakers inquired about Musk's role at the Treasury and the Consumer Financial Protection Bureau (CFPB).
Powell clarified that the Fed acts as the Treasury's fiscal agent and processes payments, while also funding the CFPB. He acknowledged that the CFPB's regulatory function in monitoring consumer finance at large banks would remain unfulfilled if the bureau ceased operations.
Powell stressed that the Fed does not influence spending decisions made by the Treasury or the CFPB. Senator Elizabeth Warren highlighted the CFPB's unique authority in this domain.
Republican lawmakers focused on bank capital standards and the practice of "debanking" certain customers. Powell expressed the need to review this issue and await leadership changes at the Office of the Comptroller of the Currency and FDIC for collaboration on a Basel III capital proposal.
Powell maintained that he would not comply with any presidential attempt to remove a Fed board member, citing legal prohibitions.