US Senators Scott and Warren urge appointment of independent Fed’s inspector general

US Senators Rick Scott and Elizabeth Warren are urging the appointment of an independent watchdog at the Federal Reserve to keep a closer eye on its officials, according to Bloomberg.

Scott and Warren have called on Fed Chair Jerome Powell to back their proposal. The initiative would require the Fed's inspector general to be nominated by the President and confirmed by the Senate, rather than being selected internally by the central bank. The lawmakers argue this change would help prevent conflicts of interest.

Scott has criticized Powell for the weak accountability, regulatory failures, and numerous unethical practices. Meanwhile, Warren is pushing for greater transparency in the Fed's operations.

At the same time, several senators, including Republicans Cynthia Lummis and Rand Paul, are warning that its continued refusal to provide information to Congress may result in legal action.