Republicans are voicing outrage after learning that the Federal Reserve kept information from Congress about a Biden administration nominee suspected of corrupt lobbying.
Senator Pat Toomey (Pa.) called it “outrageous” that the Fed was withholding records from Congress concerning Sarah Bloom Raskin, Bloomberg reported.
Federal Reserve hid information from Congress
Back in February, Toomey asked Fed chairman Jerome Powell for all correspondence relating to the fintech company Reserve Trust, which received a coveted Fed master account while Raskin served on the company’s board. Raskin later dumped her stock in Reserve Trust, netting $1.5 million.
The company’s initial request for a Fed master account was denied but was later approved after Raskin, a former Fed governor, contacted the central bank.
Raskin ended up dropping out of consideration for Fed Vice Chair of Supervision, but Toomey, the top Republican on the Senate Banking Committee, says her nomination raised unresolved issues with the Fed and transparency.
Toomey was steamed when Bloomberg reported that the Fed had acknowledged having 12 pages of records about Raskin and Reserve Trust in its response to a Freedom of Information Act request from a watchdog group — information that was never shared with Congress.
“They had this information, which might very well inform our judgment about the qualifications of this nominee. And not only did they withhold it from us, they refused to even acknowledge they had it,” he told Bloomberg.
The Swamp thumbs its nose
Toomey, who is retiring from Congress this year, said it’s “outrageous” for the Fed to show such “contempt” for Congress and its lawful oversight of the central bank.
“I think it calls for legislation to compel the Fed to be more transparent,” he said. “The Fed’s position is they’re not subject to oversight. And that’s outrageous.”
Once again, the Washington Swamp is thumbing its nose at the people. Republican senators, unlike Fed officials, are elected representatives.
Of course, many would say this is just the tip of the iceberg when it comes to Fed corruption.
After years of reckless monetary policy, the Fed spent a good part of the last year telling voters that rising inflation was “transitory.” Now, the Fed is hiking rates so aggressively, many fear the central bank triggered a recession.