U.S. Sens. Sherrod Brown (D-OH) and John Fetterman (D-PA) are urging the selection committee for the next president of the Cleveland Federal Reserve to make sure the process is transparent and includes public input.
In a letter to the committee members, the senators expressed concerns about the lack of notice about the recent town hall about the vacancy.
“The recent virtual townhall on Monday November 27th was announced with less than two weeks’ notice and is occurring the Monday following a holiday where most people travel to visit family and may be unavailable to attend. After reaching out to Fourth District community stakeholders, it is concerning to hear that very few have received notice of the town hall from the Cleveland Federal Reserve bank,” the senators wrote.
They also emphasized the importance of selecting a president that reflects the diversity of the region and that will put working families first.
“It is critical that the Cleveland Federal Reserve Bank makes the presidential selection process transparent and inclusive of public opinion. As you move through the selection process, we highly encourage you to seek input from a wide range of stakeholders including labor, consumer, and civil rights groups. We also encourage you to have more public townhall events and make greater effort to circulate the public notice well in advance of the planned event,” they continued in the letter.
The new Cleveland Fed President would oversee the supervision of about 270 financial institutions.
“In light of the recent bank failures at Silicon Valley Bank, First Republic, and Signature Bank, which were the result of gross mismanagement and supervisory failures, the person selected as President must not only have credibility to advance economic policy, they must also demonstrate a commitment to utilizing the bank’s supervisory authorities to ensure that financial institutions under their watch operate in a safe and sound manner and provide fair access to credit,” they added.
They asked the committee to respond to a series of questions, including whether the virtual town hall on Nov. 27 will be the sole opportunity for the public to engage with the committee on the selection process.