The Federal Reserve has appointed Michael Horowitz as its new inspector general to oversee internal oversight

The Federal Reserve recently announced that Michael Horowitz will be the new inspector general of the Federal Reserve. Horowitz succeeds Mark Bialek, who has held the position since 2011 and retired in April. As inspector general of the Federal Reserve, he is also responsible for independent oversight of the Consumer Financial Protection Bureau (CFPB). He previously held the position of inspector general of the Justice Department (IG). The Fed's inspector general is selected by the chairperson, which is unusual among government regulators. Some senators argue that this arrangement makes it impossible for the inspector general to exercise real oversight of the Federal Reserve, and they have introduced legislation that would require the president to select the inspector general and then confirm it by the Senate. The central bank's inspector general, the body that judges the ethical conduct of some Fed officials, has come into the spotlight in the wake of the Fed's insider trading scandal.