Powell Assures Integrity of Treasury Payments System, Downplays Musk's Influence
Federal Reserve Chair Jerome Powell has expressed confidence in the security of the Treasury payments system, despite concerns raised over Elon Musk's access to it. Powell confirmed that Musk had not attempted to access the Fed's funds.
Appearing before the Senate Banking Committee, Powell emphasized the Fed's commitment to the integrity and resilience of the Treasury system, stating, "People depend on this in a big way."
Lawmakers Question Musk's Involvement with Treasury and CFPB
During the hearing, Democratic lawmakers expressed concerns about Musk's involvement with the Treasury Department and the Consumer Financial Protection Bureau (CFPB). Powell clarified that the Fed does not determine spending decisions but acknowledged the importance of the CFPB's consumer finance oversight.
Fed's Role in Banking Regulations
Republican lawmakers raised questions about bank capital standards and the practice of "debanking" certain customers. Powell indicated the need to review the debanking issue and indicated the Fed's collaboration with other regulators on bank capital reforms.
Powell's Position on Trump's Policies
Regarding the potential impact of Trump's tariff policies, Powell acknowledged the possibility of higher inflation but emphasized uncertainty about the actual policies' effects. He reiterated that removing a Fed board member by the President is not legally permitted.