**Michael Horowitz Appointed as New Inspector General for Federal Reserve and CFPB**

Federal Reserve Chair Jerome Powell has announced a significant new appointment, selecting Michael Horowitz, a seasoned Justice Department watchdog, to serve as the new inspector general for the Federal Reserve (Fed) and the Consumer Financial Protection Bureau (CFPB), effective June 30.

Horowitz, who has served with distinction as the inspector general at the Justice Department since April 2012, replaces Mark Bialek, who retired earlier this year after 14 years in the role. This change comes at a critical time, as both the Fed and CFPB face heightened scrutiny and pressure from the Trump administration, which has shown interest in reshaping the operations and regulatory frameworks of these institutions.

Horowitz gained recognition and praise from Trump supporters for his work on revealing issues in the FBI's investigation into potential collusion between the Trump campaign and Russia during the 2016 election. Notably, he was spared during the extensive firings of inspectors general by President Donald Trump earlier this year. Trump's endorsement of Horowitz included commendations for what he described as an "accurate, well-done report" on former FBI Director James Comey.

The role of inspector general at the Fed and CFPB is not subject to presidential appointment or Senate confirmation, a unique aspect that has drawn criticism from members of both political parties. Senators Elizabeth Warren (D-Mass.) and Rick Scott (R-Fla.) have been vocal in advocating for legislation that would require these positions to be filled by White House-appointed and Senate-confirmed individuals to ensure stronger oversight.

In a letter earlier this year, Warren and Scott urged Powell to choose a candidate with a proven track record of holding government officials accountable for corruption and mismanagement. With Horowitz's appointment, it appears their call for a robust inspector general may be heeded, potentially impacting the future direction and regulatory practices of the Fed and CFPB.