The Federal Reserve’s in-house watchdog defended his agency's independence and ability to conduct investigations in a Senate hearing on Wednesday, while acknowledging some dissatisfaction with the way his agency has looked into financial market trades by top central bankers, Reuters reported. “No Board Chair has resisted or objected to our oversight work since I have been the IG,” said Mark Bialek, who leads the Office of the Inspector General that provides oversight of the central bank and the Consumer Financial Protection Bureau. “If that were to happen, I would not hesitate to report that to Congress.” Bialek testified before the Senate Committee on Banking, Housing and Urban Affairs as his agency has ended up in the crosshairs of some legislators. Over the last year and a half, the Fed has faced a series of controversies around trading activities of top officials, as well as its regulation of banks in the wake of some high-profile failures. Those situations have prompted IG investigations. Some senators have been critical of the oversight and they are not confident that a Fed IG that is selected by and serves at the pleasure of Fed leadership can appropriately provide the oversight and accountability. The Fed IG has faced particular heat over its investigation into the central bankers' trading activities.
