WASHINGTON, D.C. – Today, ahead of this week’s Federal Open Market Committee meeting and following the shocking failures of Silicon Valley Bank, Silvergate Bank and Signature Bank, Senator Rick Scott sent a letter to Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, calling out the Fed’s gross mismanagement and lack of oversight of these banks and demanding significant reforms. For more than two years, Senator Scott has called on Chair Powell to increase the Fed’s accountability to the American people, shrink its massive balance sheet and do more to mitigate and stop inflation.
Since being elected to the U.S. Senate, Senator Scott has repeatedly urged action to address America’s debt crisis and the harmful effects of inflation. Click HERE for a comprehensive list of his statements and actions on this urgent issue.
Read the full letter HERE or below.
March 20, 2023
The Honorable Jerome Powell
Chair
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue Northwest
Washington, DC 20551
Dear Chair Powell:
This week’s meeting of the Federal Open Market Committee (FOMC) is one of significant importance following the recent failures of Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank. The failures and malfeasance, not only of these banks, but their regulators, should be at the top of the agenda. Before the meeting concludes, it is my expectation that you name the individual(s) being fired for these failures, and make clear your support for significant accountability measures at both the Federal Reserve and our banks. If nothing changes, why would you expect a different result in the future?
For the last two years, you have made repeated arguments for higher interest rates to lower inflation and overseen such action by the Federal Reserve. Inflation continues to rage. Since President Biden took office, food prices are up 19.9%, gas is up 45.2% and utility costs are up 42.5%. In addition, wages are not staying up with inflation. The middle class is shrinking, while the rich are getting richer. This week, as the FOMC meets, inflation must continue to be a top focus, and serious conversations about the failures of SVB and others must be had, including the Federal Reserve’s failure to properly identify and prevent this situation. For too long, the Federal Reserve has used its claim of independence to thwart Congress and the American people while being unable or unwilling to properly regulate and supervise the large financial institutions under its care.
This unacceptable lack of accountability means that as families and businesses continue to tighten their belts, Wall Street and Silicon Valley enjoy special treatment and government-backed bailouts from their regulators. This is wrong. It is disgusting that executives at SVB handed out bonuses, and paid themselves, when they knew they were going under. The American people are fed up and will not allow the government to put them on the hook for these failures.
With so much at stake, I write to you today to ask the following questions:
I look forward to your prompt response. Consumers and American families must not bear the brunt of the failures of gross mismanagement and greed at their banks or the incompetence and misdeeds of the government regulators who are there to protect them.
Sincerely,
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