WASHINGTON – Federal Reserve Board Gov. Lael Brainard's contributions to Hillary Clinton's 2016 presidential campaign is drawing the ire of some members of Congress who already question federal regulators' political autonomy.
"If anyone had questions about the independence of the Federal Reserve, this makes it crystal clear they're not," Sen. David Vitter, R-La., said in a statement Wednesday.
It was first reported by Bloomberg News that the Obama nominee contributed $750 to Clinton's campaign between November and January. While the contributions may not have broken any Fed rules, members of Congress have accused the central bank of playing favorites and having political leanings in the past.
-
During an unusually aggressive bout of questioning for Yellen, particularly from a lawmaker generally regarded as supportive of the Fed chair, Warren questioned comments made by Fed General Counsel Scott Alvarez last year raising concerns with aspects of the financial reform law.
February 24 -
Federal Reserve Board Chair Janet Yellen fought back Wednesday against accusations that the New York Fed and its president are too close to the biggest banks, saying the central bank and William Dudley have significantly toughened oversight since the financial crisis.
December 17 -
Senate Banking Committee members pushed Federal Reserve Chair Janet Yellen Thursday for some indication of whether the central bank would approve banks' so-called "living wills" or instead will force asset sales and other steps to simplify their structures.
February 11
Additionally, members of Congress have often called for the central bank to be more transparent to assure that the agency acts in nonpartisan manner.
"The Fed needs to be independent, transparent and accountable," Vitter said, "but under its current structure, the Board of Governors doesn't act with complete autonomy and succumbs to groupthink which has led to megabank bailouts and easy money policies."
Vitter and Sen. Elizabeth Warren, D-Mass., proposed legislation last May that would require members of the Fed board to publicly record their vote on the resolution of enforcement actions over $1 million. The board is currently not required to vote on enforcement actions or settlements.