The U.S. Senate Committee on Banking, Housing and Urban Affairs’ ranking member, Senator Elizabeth Warren, urged Senators to back Senator Rick Scott’s bipartisan amendment to require the Board of Governors of the Federal Reserve System to have an Inspector General appointed by the President and confirmed by the Senate. The press release notes the amendment received support from a majority of Senators and would take effect in 2029. The proposal would replace the current structure under which the Federal Reserve Chair selects the Inspector General and the Board oversees the office, sets compensation, and can remove the Inspector General. Warren argued this creates a structural conflict of interest and cited the Federal Reserve’s internal handling of ethics controversies, including a 2021 investigation by the in-house Inspector General into senior officials’ pandemic-era financial trading. The release also references prior Warren-Scott legislation that would have required independent Inspectors General at both the Federal Reserve and the Consumer Financial Protection Bureau. If adopted, the changeover to a presidentially appointed, Senate-confirmed Inspector General would begin in 2029.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-10-09
U.S. Senate Committee on Banking, Housing and Urban Affairs minority urges adoption of amendment requiring a Senate-confirmed Federal Reserve Inspector General effective 2029
Senator Elizabeth Warren urged support for Senator Rick Scott’s bipartisan amendment for a presidentially appointed, Senate-confirmed Inspector General for the Federal Reserve, citing conflicts of interest. The amendment, supported by a majority of Senators, would take effect in 2029, replacing the current structure where the Federal Reserve Chair selects the Inspector General. Warren highlighted past ethics controversies and previous legislation advocating for independent Inspectors General at the Federal Reserve and the Consumer Financial Protection Bureau.