Federal Reserve Chairman Jerome Powell just shut down Rashida Tlaib over the question of bailing out Detroit and Puerto Rico.
Tlaib wants the Federal Reserve to bail out the Democrat politicians who ran Detroit into the ground and bankrupted the once-great American city.
Now, Tlaib wants a handout rather than getting to work to fix the problem the Democrats caused. But she will not get it after Fed Chair Powell denied her request.
Look, many cities hurt by 50 years of Dem rule will be asking the Fed to bail them out if Powell gave in to Tlaib.
They need to clean up their own house before asking for a bailout.
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.”
Interesting back and forth where @RashidaTlaib asks Powell that if the Fed can backstop the financial sector in a credit crisis and recession, why can't it do the same for public entities like states, cities and municipalities when they are in crisis? pic.twitter.com/t8s2slm1Uq
— Mike Konczal (@rortybomb) July 10, 2019