WASHINGTON – President Obama’s failure to fulfill a requirement of the Dodd-Frank Act and appoint a Vice Chairman for Supervision at the Federal Reserve means Fed Chair Janet Yellen will testify next week before the House Financial Services Committee.

Chairman Jeb Hensarling (R-TX) today announced Federal Reserve Chair Janet Yellen will testify on Nov. 4 before the Committee about the Fed’s actions and plans for bank regulation and supervision.

The Dodd-Frank Act, signed into law by President Obama five years ago, greatly expanded the Federal Reserve’s regulation and supervision authority.  In recognition of these added responsibilities, Dodd-Frank also created the new position of Vice Chairman for Supervision at the Federal Reserve, to be filled by a person appointed by the President and confirmed by the Senate, and required that person to testify twice a year before the Financial Services Committee and the Senate Banking Committee.

“Dodd-Frank’s massive expansion of the Federal Reserve’s authority has made the Fed America’s most powerful regulatory agency as well as our nation’s central bank.  President Obama’s inability or unwillingness to fulfill this requirement of Dodd-Frank and appoint a Vice Chair for Supervision deprives Congress of an important opportunity to conduct effective oversight and hold the Fed accountable.  That’s simply unacceptable,” said Chairman Hensarling.  “Until the president appoints someone, we will have Chair Yellen testify and answer our questions.”

Chairman Hensarling and Senate Banking Chairman Richard Shelby (R-AL) wrote to Chair Yellen on May 18, 2015 notifying her of their “intention to have you appear semi-annually before both” the House and Senate committees “until the position of Vice Chairman for Supervision position is filled.”

As Chair of the Federal Reserve, Chair Yellen testifies twice each year before both committees to discuss the Fed’s conduct of monetary policy.  Chairman Hensarling asked for – and received – her commitment to also testify on the Fed’s regulatory activities during her appearance before the committee on July 15 to discuss monetary policy.

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