Congress and Federal Reserve Chair Janet Yellen had a showdown of epic nerd proportions as they battled out the Fed’s approach to monetary policy and her relationship with Congress.
The day began ordinarily enough. She read from prepared statement, producing ginormous yawns from one and all.
I’m shocked that #Yellen is repeating the exact same thing for the 8th time.
— Alan Farley (@msttrader) July 15, 2015
Then the first spark of the fireworks that lay in wait came from House Financial Services Committee leader Jeb Hensarling (R., Texas). Congress is pretty bent out of shape that the Fed has ignored a subpoena for more information on a leak on planned Treasury sales back in 2012. The real fireworks didn’t come until Rep. Sean Duffy, (R., Wis.) went ballistic.
Rep. Duffy to #Yellen, on the Fed/leak investigation: “What do you do? Nothing! You did absolutely nothing. Zero!” @CNBC — Carl Quintanilla (@carlquintanilla) July 15, 2015
“if anyone is trying to sweep this under the rug, it’s the Fed.” – Rep. Duffy, to #Yellen #FedLeak @CNBC — Carl Quintanilla (@carlquintanilla) July 15, 2015
Yellen says Fed has “clear rules” for leak investigations. That’s true. But it did not follow those rules. http://t.co/RNiocKlwFS — Binyamin Appelbaum (@BCAppelbaum) July 15, 2015
So Duffy and Hensarling lay into Yellen for refusing to comply with subpoena, but no one has uttered the “contempt” word yet. — Pete Schroeder (@peteschroeder) July 15, 2015
Meanwhile, the peanut gallery on Twitter comments on the substance of her monetary policy:
Two years running, Fedspeak trying to pretend international economy and political risk isn’t driving the U.S. rate hike bus #Yellen — Lawrence McDonald (@Convertbond) July 15, 2015
FYI, @FederalReserve Chair #Yellen pressed on Capitol Hill for the way her testimony downplays the #liquidity#risks to the bond #markets — Mohamed A. El-Erian (@elerianm) July 15, 2015
Featured photo: BKL