Powell and Yellen Hearing Recaps
July 16, 2024
Last week, Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee (HFSC) and the Senate Banking Committee (SBC) to deliver the Semiannual Monetary Policy Report. Treasury Secretary Janet Yellen separately testified before the HFSC.
Why it matters: Monetary policy and the Basel Capital proposal (covered above) were key topics in the Powell hearings while Yellen’s discussion focused on a variety of policy issues, including beneficial ownership reporting.
CRE Mentions: Commercial real estate was not a key focus of the hearings, but the issue came up several times.
Sen. Tina Smith (D-MN) and Rep. Brittney Pettersen (D-CO) touched on the risks posed by commercial real estate with Powell, focusing specifically on the effect it could have on smaller banks. Powell emphasized the issue does not appear to be systemic and that examiners and banks are working through the issues: