Michael Bar is officially. The Vice -Chairman of the Federal Reserve stepped down to supervise his role, leaving a large gap in the Central Bank supervision and supervision committee.
Its exit, certain Last week, the only official responsible for overseeing banking regulations removes the Ministry of Governmental efficiency at Elon Musk (DOGE) efforts to scrutinize monetary policy at the Federal Reserve Bank.
Bar’s resignation means that the committee now has two members only – Philip Jefferson and Michelle Bowman. While all the seven federal governors are still voting on organizational issues, there is no longer supervision of a major guideline.
The timing of his departure is not a coincidence. In January, Bar warned that staying in this role could lead to a political confrontation with President Donald Trump. Instead of fighting, left.
The Vice President of Supervision Role was established under the Dodd-Frank Law after the 2008 financial crisis. Without a bar, Trump will have to appoint a new chair from the current board of directors because the following vacancies do not open until 2026. But at the present time, the leadership of the Federal Reserve is in a state of forgetfulness.
Musk’s Doge targets the 24,000 Federal Reserve employees
Musk turned its focus to the workforce in the federal reserve, and the central bank described it as “absolutely exaggerated” in a former Twitter (Twitter) publication on Sunday.
This is the second time for months, as he accused, as he published the same claim in December. This time, Musk shared a graphic fee for employment numbers in the Federal Reserve with the “Federal Reserve End”, in response, “The Federal Reserve is absolutely exaggerated.”
A government ministry has already forced thousands of federal workers to justify their jobs by providing detailed email messages about their work activity. Now, the agency puts its attention on 24,000 employees through the Federal Reserve and 12 regional banks.
Unlike most government agencies, the Federal Reserve does not depend on Congress for financing. Instead, it earns money from interest on government securities.
But the central bank is working on a deficit due to high interest rates on bank reserves. This is the place where Dog comes.
Musk does not target a $ 6.8 trillion public budget, which is already validated by the Government Accountability Office (GAO) and private companies. His concern is the decision -making process behind interest rates and monetary policy.
Paying Musk comes in a critical moment. On Tuesday, Trump’s executive order was already stripped some Federal Reserve Authority on major banks, and to transform power into political appoinals in agencies such as the Securities and Stock Exchange Committee (SEC) and the Federal Trade Committee (FTC). However, it leaves the monetary policy of the Federal Reserve without touching – now.
Trump’s second term will be held “Federal Reserve Audit”
The idea of a federal reserve audit is not new. The Republicans have been pushing for this since 2015 through the Federal Transparency Law, also called “Federal Reserve Auditing”.
The draft law, which was aimed at making interest rate decisions subject to the approval of Congress, has never acquired a preposition. Last year, Senator Chuck Grassley and Rand Paul tried to revive it, but they failed again.
Now, with Trump’s return to the office and supporting the idea, the discussion has returned. Musk was asked in a governor gathering last Thursday whether the Federal Reserve should be audited. Red it? “Yes, of course.”
Trump’s new executive will already give those appointed more power over federal agencies. But the Federal Cash Reserve Policy is still out of this arrival. This can change quickly if you gain payment for momentum.
Earlier this month, a user posted on X that all aspects of the Federal Reserve must be reviewed completely. Musk agreed to the response: “All aspects of the government should be completely transparent and responsibility towards people. No exceptions, including, if not in particular, the federal reserve.”
Doge Audit efforts struck a barrier this month when a federal judge temporarily prevented the musk department from reaching the Treasury payment system. But this did not slow down.
Wall Street defends the independence of the Federal Reserve
The financial sector is declining. Former Federal Reserve Chairman Ben Bernanck warned of political intervention in monetary policy, as he wrote in 2016 that the Federal Reserve is making decisions with “the best technical information available” and that “political interference in monetary policy decisions will not lead to better results.”
Wall Street executive officials also weigh. After Trump’s victory in the November elections, CEO of Bank of America Brian Moinhan and CEO of Lazard Peter Oraszag argued that the independent Federal Reserve is in the interest of the economy.
“The independent federal reserve is useful for the American economy, which is good for everyone,” Roger Ferguson, former Federal Reserve Vice President, told CNBC last month.
Currently, Trump’s Treasury Secretary Scott Payet insists that there is no plan to interfere with the Federal Reserve. In January’s assertion session in January, Bessin said: “I think in monetary policy decisions, (FED) should be independent.”
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