Federal Reserve Appoints Michael Horowitz as New Inspector General

The Federal Reserve has appointed Michael Horowitz as the new Inspector General, a role that will oversee internal operations and ensure compliance with regulations. This appointment comes at a critical time for the Federal Reserve, as it continues to navigate the complexities of monetary policy and financial regulation. Horowitz, who previously served as the Inspector General for the Department of Justice, brings a wealth of experience in oversight and investigative work to his new position. His appointment is expected to enhance the Federal Reserve's internal controls and transparency, which are essential for maintaining public trust in the institution.

The Federal Reserve's decision to appoint Horowitz underscores its commitment to robust internal oversight and accountability. As the Inspector General, Horowitz will be responsible for conducting independent audits and investigations, as well as providing recommendations to improve the Federal Reserve's operations. His role will be crucial in ensuring that the Federal Reserve's policies and practices are in line with its mandate to promote maximum employment, stable prices, and moderate long-term interest rates.

Horowitz's appointment follows the retirement of Mark Bialek, who served as the Inspector General since 2011 and stepped down in April of this year. The Inspector General of the Federal Reserve is appointed by the Chair, a process that some senators have criticized as it prevents the Inspector General from truly overseeing the Federal Reserve. Legislation has been introduced requiring the Inspector General to be selected by the President and then confirmed by the Senate.

Horowitz's new role also includes independently overseeing the Consumer Financial Protection Bureau (CFPB), adding another layer of responsibility to his duties. This appointment comes amidst public scrutiny following the Federal Reserve's insider trading scandal, where the Inspector General's office is tasked with assessing the ethical standards of trading activities by some Fed officials.

The appointment of Horowitz is a significant development for the Federal Reserve, as it seeks to strengthen its internal governance and maintain its credibility in the face of ongoing economic challenges. His extensive background in oversight and investigative work positions him well to address the complex issues facing the Federal Reserve and ensure that its operations remain transparent and accountable.