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Powell said the board has identified reputational risk in prior supervisory materials and has moved to clarify how examiners should treat it. He told the committee that Vice Chair for Supervision Michelle Bowman, a former supervisor, ‘‘speaks that language’’ and will be central to implementing changes at the examiner level.

On capital rules, Powell said the Fed is preparing actions on two main fronts: a Basel III ‘‘endgame’’ re‑start with the Office of the Comptroller of the Currency and the FDIC, and a proposal on the supplemental leverage ratio (SLR) that the board would vote to publish for comment. He described the SLR as intended to be a backstop to risk‑based capital requirements and said the current package aims to restore that backstop role.

Wells Fargo asset cap removal and stress‑test transparency

Committee members pressed about past supervisory penalties. Powell confirmed the Fed voted unanimously to remove an asset cap placed on Wells Fargo after the bank satisfied conditions the agencies had imposed. He said the decision followed the bank meeting required benchmarks and was taken in coordination with other agencies.

Several senators asked about stress‑test transparency and timing. Powell said the Fed intends to publish models later this year and is working on smoothing test results year‑to‑year to reduce volatility in outcomes.

CRA, discount window and deregulatory guidance

Powell told the committee the Fed, FDIC and OCC intend to withdraw the 2023 proposed community reinvestment rule and revert to prior regulations while considering future changes. He also said the discount window needs technological modernization so institutions can access it more readily.

Why it matters: Changes to how the Fed supervises banks, the design of capital standards and approaches to stress testing have direct consequences for bank lending, community banks’ costs of compliance and the resilience of the U.S. financial system. Powell said the board’s objective is to maintain safety and soundness while aligning capital rules so that risk‑based requirements, not blunt leverage constraints, determine incentives.

What the committee asked for: Senators repeatedly sought assurances that supervisors will not use subjective guidance to ‘‘debank’’ lawful customers, and asked that implementation of guidance reflect clearer, objective standards. Powell pointed to Bowman’s supervisory background and said he expects more clarity will follow.","mediaType","Video","parentTitle","Full Committee Hearing: The Semiannual Monetary Policy Report to the Congress","oneSentenceSummary","The Senate committee questioned Federal Reserve Chair Jerome H. Powell about supervisory changes at the Fed, planned revisions to the capital framework including the supplemental leverage ratio, and agency actions such as removing Wells Fargo’s asset cap.","taxTitle","Banking, Housing, and Urban Affairs: Senate Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal","taxId",1988,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6183246,"Senators press Powell on BLS staffing, FedNow costs and stablecoin demand; Fed flags monitoring work on AI",585,3687000,4272000,"/Search/View?dp=1&key=5098365-90c369a29743b71fd0da9d110cefb8db&start=3687&end=4272","https://assets.pipeline.soar.com/5098365-90c369a29743b71fd0da9d110cefb8db/thumbnail_3687000.jpg","/articles/6183246/Senators-press-Powell-on-BLS-staffing-FedNow-costs-and-stablecoin-demand-Fed-flags-monitoring-work-on-AI","https://secure.pipeline.soar.com/6183246-885ab8ae8f5c890a226c09c1a08e1228/orig.mp4?Expires=1771161741&Signature=bBNYIr9HV61ycf7cY1XVqZm8YDCOOHDiD4emc94FY5SvoDhSj8ASRGvYtIO0i60o44eYyom~HDzvdDWd4R~zaUXO22BQnkf6JPbTzjuZgXSQruOmJYbGVwtlMgPZuB2J50REACdoN~qOE5YLgafD8PWMq92N~RiVOk9AfIgy4CMdDQ4I~vhThtZi9m-MkXnE2JrXoKOlnFKdqB-DKoaALhUKjV--FB9NHOJd7uaDdmCY~9LQwAmF5SSJm-xgxzzXQPGsak2WFn9VBLygkL9IzhNU48DltEmbQedqM88LRkR5cdQ3s41DepucH2sOcxm~Ilnmbjv7i3M3PTPPOWudnw__&Key-Pair-Id=KUT5TJCACFTXG","Several senators used the hearing to press Federal Reserve Chair Jerome H. Powell on a range of data, payment system and technology issues, including staffing cuts at the Bureau of Labor Statistics, the Fed’s FedNow instant payment service, and regulatory treatment of stablecoins.

BLS and data quality

Senators warned that reductions in Bureau of Labor Statistics (BLS) staffing have increased the share of inputs the agency must estimate when compiling the Consumer Price Index and other measures. Powell said the Fed is ‘‘concerned’’ about any deterioration in public data and that accurate inputs are important to both public‑ and private‑sector decision‑making. He said he was not aware of a specific BLS study the Fed could no longer replicate but welcomed further committee information if specific gaps exist.

FedNow rollout and funding

Several senators asked about FedNow, the Fed’s real‑time payments system, and its implementation costs. Senators cited an initial program cost of roughly $545 million with additional spending of about $245 million expected in 2025. Powell said the Fed is required to run FedNow on a self‑funding basis and that uptake has been steady but slower than some expected; he said the Fee structure is intended to cover direct and indirect costs but that he could not guarantee the target would be met immediately.

Stablecoins and demand for short‑term Treasuries

Senators discussed the recently passed Senate bill (referred to in the hearing as the Genius Act) that would create a regulatory framework for payment stablecoins backed 1:1 by cash or short‑dated Treasuries. Powell said such a framework is ‘‘a great thing’’ and that increased demand for Treasury bills from stablecoin backing could put downward pressure on short‑term yields, though he did not quantify the effect.

AI, credit models and data uses

On artificial intelligence, Powell said the Fed has research underway and monitors global developments. He noted both the potential for AI to raise productivity and the uncertain timing and scale of effects. Committee members raised concerns about AI‑driven credit models and fair‑lending risks; Powell said the Fed is aware of model bias risks and engages with industry and researchers to mitigate them.

Why it matters: Reliable price and labor‑market data, the structure of payment systems and the design of regulatory frameworks for stablecoins and AI models influence how well monetary policy and financial supervision can function. Senators asked for more information and documentation where they saw potential risks to policymaking and market functioning.","Senators pressed Chair Jerome H. Powell about data quality at the Bureau of Labor Statistics, the FedNow payments rollout and its costs, and how a potential surge in stablecoins could affect demand for short‑term Treasury securities.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6183249,"Powell rejects several media claims on Fed renovation as senators press for detailed accounting of $2.5 billion cost overrun",85,2160000,2245000,"/Search/View?dp=1&key=5098365-90c369a29743b71fd0da9d110cefb8db&start=2160&end=2245","https://assets.pipeline.soar.com/5098365-90c369a29743b71fd0da9d110cefb8db/thumbnail_2160000.jpg","/articles/6183249/Powell-rejects-several-media-claims-on-Fed-renovation-as-senators-press-for-detailed-accounting-of-25-billion-cost-overrun","https://secure.pipeline.soar.com/6183249-59258557f4303e093e0b5dd04cb43887/orig.mp4?Expires=1771161741&Signature=J~-LYY7lccuj0UCi9OIWs~VMH96J7zE3NxW2Av7VcUFRuPDBNyPcbUsZp9VAMbYQ54P6DhELtnSc6CNAOfQWGrpN5dzwrBHoiWP096Kh0G6Ug-JOqyQYW9LYv4GvE2yrFdF7IaEmmysv-YorrOpZUott0sf2p~ounpBYNV19TgDWO1DFpoIHEWEot97qirI1aTOTBXznoHlZgxSbV5xZZkvDXrdguB-4x7JwbeLpstDlMQMiwg8TtoitmALp0CILvdnLHwJ3WBEZQ7JrdoEf1KIQ1gFY-Kaq~LzArtYs1oHyrsQFcRfAI-Jfc9KVhvGFw7IY6ue-dJq9jU2qhh3SVQ__&Key-Pair-Id=KUT5TJCACFTXG","Senators on the Banking Committee asked Federal Reserve Chair Jerome H. Powell to explain a reported multi‑billion dollar increase in renovation costs for the Fed’s Washington offices and to provide documentation of what has driven the increase.

At the hearing, senators cited media reports and National Capital Planning Commission materials that listed rooftop terraces, ornate water features, white marble finishes and elevators described in some press accounts as delivering members to ‘‘VIP dining’’ areas. Some senators described the total project cost as $2.5 billion, up from an originally reported $1.9 billion.

Powell disputed several of those specific characterizations. He told senators that \"there's no VIP dining room,\" \"there's no new marble\" in the sense portrayed by the press, and that media accounts of ‘‘beehives’’ and roof‑top gardens were inaccurate or no longer reflected in plans. Powell said parts of the building are historic and required replacement of damaged materials; in some places new marble will be used where old marble broke.

Powell said the Fed takes stewardship of public funds seriously and that the board will provide a fuller response to a committee letter received the day before the hearing. \"We will provide a much more detailed response,\" he said, adding that the major drivers of cost increases are not the decorative features reported in the press.

Why it matters: The size and character of renovations at a public institution that performs a central banking function raise public scrutiny when costs rise into the billions. Senators pressed for clarity on plan changes, the timing of revisions, and whether media coverage reflected current designs.

What senators asked for: Multiple senators invited Fed staff to brief committee staff, asked for page‑by‑page explanations where planning documents had been cited, and sought materials on the specific cost drivers Powell says explain the overruns. Powell welcomed the opportunity to meet with committee staff and to provide additional documentation.","Senators pressed Chair Jerome H. Powell about a multi‑billion dollar renovation of the Fed's historic headquarters. Powell disputed several media characterizations of the plans and said the Fed will provide a detailed response to the committee’s letter about cost drivers and changes in the plans.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6183261,"Powell tells Senate Fed will weigh tariffs as a risk while aiming to sustain jobs and bring inflation to 2%",257,1531000,1788000,"/Search/View?dp=1&key=5098365-90c369a29743b71fd0da9d110cefb8db&start=1531&end=1788","https://assets.pipeline.soar.com/5098365-90c369a29743b71fd0da9d110cefb8db/thumbnail_1531000.jpg","/articles/6183261/Powell-tells-Senate-Fed-will-weigh-tariffs-as-a-risk-while-aiming-to-sustain-jobs-and-bring-inflation-to-2","https://secure.pipeline.soar.com/6183261-85ca239f507490106c6e0352bc627acd/orig.mp4?Expires=1771161741&Signature=l-rYYsQEiT0NY7TecjUjMZAbLVKU7wRBWICNYdQGz7qQnWS0ttRB3nTm0AJKrMYcMjbvS~r3o9aKpZFRygElCXHf0CGd8yrP-k3JGmELcm4SFRFZNxW82Cl19A8A6UqdGi5Rf6CM-98nnT~hsOf0czNa2WdfvXji8-bsacEeS7C9BfEdW6gG3ILV4aDd~mNEZEzyda29YT3CjsKlFSblxMSJeYz3gOdQmJYuCP55o1ViRtAU4jTBGkybUYFuQYYJGk-~JYRC7X9Zey~QZ7gOXajjCTbIMBCwpe1QUCw4RE5ameXywgz777wtPA~We02rocpUsxYHI799vc31c19HOw__&Key-Pair-Id=KUT5TJCACFTXG","Federal Reserve Chair Jerome H. Powell told the Senate Banking, Housing, and Urban Affairs Committee on Tuesday that the Fed remains focused on its “dual mandate goals of maximum employment and stable prices for the benefit of the American people.”

Powell said incoming economic data show the U.S. economy is ‘‘in a solid position’’ with unemployment near what the Fed considers maximum employment and inflation ‘‘running somewhat above our 2% longer run objective.’’ He told senators that private domestic demand remains solid even as measurements of gross domestic product have been complicated by recent swings in net exports.

Why it matters: Powell repeatedly framed tariffs announced this year as a source of uncertainty that could push up prices and slow activity. He said the Fed does not take a position on trade policy’s merits but must prepare for tariff effects on prices and on expectations that can themselves influence inflation over time.

Powell: policy will be data-dependent

\"We will continue to determine the appropriate stance of monetary policy based on the incoming data, the evolving outlook and the balance of risks,\" Powell said. He emphasized that the Fed has held the federal funds target range at 4.25%–4.5% and is ‘‘well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy rate.’’

On tariffs specifically, Powell repeated that outcomes could differ: in some scenarios tariff moves produce a one-time increase in price levels, in others the effects could be more persistent and raise inflation expectations. \"Avoiding that outcome will depend on the size of the tariff effects, how long it takes for them to pass through fully into prices and ultimately on keeping longer term inflation expectations well anchored,\" he said.

Senators press on fiscal policy, redistribution and near-term effects

Ranking Member Sen. Elizabeth Warren (D-Mass.) framed the current administration's trade and tax proposals as likely to raise costs for many Americans and increase federal deficits. \"This isn't tax policy. It's economic warfare against the American people,\" Warren said, criticizing recent tax and trade measures and warning they could raise consumer costs and slow growth.

Powell declined to take positions on particular fiscal proposals but reiterated that the Fed treats fiscal policy as exogenous to its month‑to‑month decisions. \"We do not look at federal financial policy and deficits as something that affects our month to month, monetary policy decisions,\" he said, while acknowledging in the abstract that fiscal policy can affect inflation over longer horizons.

Outlook: cautious, data-driven approach

Across questioning, Powell said the Fed is closely monitoring consumer and business sentiment, wage and inflation measures, and how tariffs translate into consumer prices. He noted that measures of longer‑term inflation expectations remain broadly consistent with the 2% objective but warned that both upside and downside risks remain. He also said the Fed will continue reducing its holdings of Treasury and agency mortgage‑backed securities while calibrating the transition to ‘‘ample’’ reserve balances.

What’s next: Powell said the FOMC would continue to evaluate incoming data and that policy changes will be guided by that information. He declined to give a timetable for rate cuts, saying the committee is ‘‘in a position of wanting to take our time and make a smart decision as we see how this unfolds.\"","Federal Reserve Chair Jerome H. Powell told the Senate Banking Committee that the Fed remains focused on its dual mandate of maximum employment and price stability, flagged tariffs and related uncertainty as a meaningful near-term risk to inflation and growth, and said the central bank will act on incoming data before changing policy.","actionData","errors"]

Article not found

Senators press Powell on reputational risk, supplemental leverage ratio and capital rules; Wells Fargo cap removal noted

Senators press Powell on BLS staffing, FedNow costs and stablecoin demand; Fed flags monitoring work on AI

Powell rejects several media claims on Fed renovation as senators press for detailed accounting of $2.5 billion cost overrun

Powell tells Senate Fed will weigh tariffs as a risk while aiming to sustain jobs and bring inflation to 2%