Federal Reserve Governor Michelle Bowman said that the central bank should hire an outside party to further examine the events that led to the abrupt failure of Silicon Valley Bank
In prepared remarks, Bowman also cautioned against using recent turmoil in the banking sector as "pretext" for aggressive new banking rules, calling the current system "fundamentally strong."
"I believe that the Federal Reserve should engage an independent third party to prepare a report to supplement the limited internal review to fully understand the failure of SVB. This would be a logical next step in holding ourselves accountable and would help to eliminate the doubts that may naturally accompany any self-assessment prepared and reviewed by a single member of the Board of Governors," she said.
"We should avoid using these bank failures as a pretext to push for other, unrelated changes to banking regulation," she said. The remarks from Bowman, who was appointed to the Fed by former President Donald Trump, are a rare criticism of internal work by a colleague at a body that strives to pursue policy via consensus. Barr was nominated for the central bank's top regulatory post by President Joe Biden.
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