Bernie Sanders: Federal Reserve ‘hijacked’ by bankers

Bernie Sanders criticizes the Federal Reserve

Bernie Sander Federal Reserve
U.S. Democratic presidential candidate Bernie Sanders delivers a speech.

Bernie Sanders criticized the Federal Reserve this past Wednesday, calling it an institution “hijacked by the very bankers it regulates” and called for prohibiting bank executives from serving on the Reserve’s governing boards.

Last week during the Democrat debate Sanders blasted the Federal Reserve’s decision to increase interest rates and made it clear to Wall Street that they will not like him if he wins the election.

Earlier this week Sanders continued his attack on Wall Street in a New York Times op-ed. “Wall Street is still out of control,” wrote sanders. Sanders focused his criticism on the fact that 7 years after the too-big-to-fail banks were bailed out by the government, banks today are bigger than ever.

“To rein in Wall Street, we should begin by reforming the Federal Reserve,” Sanders wrote. “Unfortunately, an institution that was created to serve all Americans has been hijacked by the very bankers it regulates.”

Sanders compared allowing bankers to run the Federal Reserve to allowing oil executives to run the EPA.

Sanders proposed changes to how the Reserve appoints its board members. He believes bankers should be barred from serving on the board. Under Sanders’ proposal, the president would nominate the candidates and the Senate would vote to appoint the candidate.

Sanders argued that the Fed’s decision to raise interest rates was a result of pressure from the banking community. He believes the Fed should not have raised rates until the unemployment rate fell below 4%.

Sanders attack on Wall Street draws a sharp contrast between his campaign and Hillary Clinton’s campaign. Hillary has close ties with corporate America. She has received significant campaign donations from major banks. In fact, the only other candidate with more support from Wall Street is Jeb Bush.