Federal Reserve Chairwoman Janet Yellen dismissed congressional Republicans’ efforts to reform the central bank Wednesday, saying that the Fed functions well and is accountable for its actions.
“To my mind, the Fed is accountable and we work well as an institution. I’m not sure what the problem is that needs to be addressed,” Yellen said at a press conference Wednesday following the Fed’s two-day monetary policy meeting.
Yellen was asked to respond specifically to a bill passed by the Senate Banking Committee under Chairman Richard Shelby, R-Ala. The broad financial overhaul bill includes a provision to set up a commission on reviewing the structure of the Federal Reserve System and make other changes to its operations.
The legislation, which faces unclear prospects of passage, is one of several Fed reform measures favored by Republicans, who have criticized the central bank as lacking in transparency and accountability.
Those criticisms gained traction among conservatives after the bailouts of 2008 and the subsequent slow recovery and the unprecedented efforts by the Fed to stimulate the economy through holding its target interest rate near zero and buying bonds in massive quantities.
Yellen, however, defended the central bank. “We are one of the most transparent central banks,” she said.
“I suppose I would ask what exactly is the problem?” she asked.
