“Squad” Member Rashida Tlaib (D-Michigan) pleaded with Fed Chair Jerome Powell to bail out bankrupt governments including Detroit and Puerto Rico, arguing he “has the authority.”
WashingtonExaminer reports Democratic Michigan Rep. Rashida Tlaib told Federal Reserve Chairman Jerome Powell that he “has the authority” to bail out the governments of Detroit and Puerto Rico.
“My city filing for bankruptcy was devastating to so many retirees, sir. Forty, 50 years they worked for the city of Detroit, saw their pensions completely diminished, gone,” Tlaib said to Powell during a House Financial Services Committee hearing.
“Do you not believe that the governments of Detroit and Puerto Rico also play a vital role that should be preserved even if a financial crisis makes it hard for them to borrow money?” she added.
Powell rejected the notion that the Federal Reserve should be in the business of bailing out bankrupt U.S. cities.
“What I believe is that it’s not a job for the Fed,” Powell said. “The Fed has a particular role and particular authorities, and lending to state and local governments, and supporting them when they’re in bankruptcy is not part of our mandate.”
That explanation did not satisfy Tlaib, who responded by saying, “We’re going to strongly disagree. I do believe you do have the authority.”