Jefferson Reporter

U.S. Senator Katie Britt from Alabama recently participated in a Senate Committee on Banking, Housing, and Urban Affairs hearing where she addressed Federal Reserve Chairman Jay Powell during his "Semiannual Monetary Policy Report to the Congress." During the session, Senator Britt expressed concerns about President Trump's recent initiatives aimed at reducing government spending.

“There’s been a lot of conversation both in and out of this hearing room today . . . about a ‘co-president,’ referencing Elon Musk, referencing the work that DOGE is doing. I think it’s important to remember that President Trump ran on this. He said we’re going to look for wasteful spending across our government,” stated Senator Britt. She added, “We’re $36 trillion in debt – that’s not only fiscally irresponsible, it is actually morally irresponsible. The difference in this administration and the last administration is that President Trump is actually the final arbiter.”

Senator Britt also criticized what she perceives as a double standard among Democrats: “It’s interesting that none of you had anything to say over the last four years when it is clear that our commander in chief was not in command. If we’re going to use the term co-president, then let’s go back and say co-president Jake Sullivan, co-president Ron Klain, or co-president Jill Biden."

Since assuming office, Senator Britt has questioned bank regulators on various rulemakings and emphasized U.S. banks' strengths while noting risks posed by proposed rules. She stressed accountability from the Federal Reserve's supervisory function: “We unfortunately started 2023 with several bank failures... Yet, in the aftermath of the failures, the Fed was certainly not slow to act when it came to new regulations like new capital requirements."

Britt further discussed excessive fund transfers from the Federal Reserve to the Consumer Financial Protection Bureau (CFPB), praising efforts by Acting CFPB Director Russ Vought under Trump for pausing these transfers.

Chairman Powell confirmed that “the Director of the CFPB requests money, and we, under law, send that money.” He explained that Dodd Frank prohibits review or amendment of these funding requests by the Federal Reserve.

Senator Britt questioned these payments' legality given current financial losses: “As of January 30, the Federal Reserve had a mark-to-market loss on its balance sheet of roughly $221 billion... Meanwhile, we’ve seen transfers to the CFPB totaling $2 billion since September of 2022.”

This questioning aligns with her calls for reform at CFPB: “When you look at [the CFPB's] structure... no real Congressional oversight... nearly unlimited leeway," she remarked.

In October 2024's American Banker column authored by Britt warned against politicization within CFPB urging Congress for increased oversight.

A video showcasing Senator Britt's full line of questioning can be accessed online.