Michael Horowitz, former Inspector General of the U.S. Department of Justice (DOJ), has been appointed as the new Inspector General (IG) of the Federal Reserve, replacing Mark Bialek, who retired in April after serving since 2011. In his new role, Horowitz will also act as the independent watchdog for the Consumer Financial Protection Bureau (CFPB).
Horowitz brings extensive oversight experience, having led investigations into government misconduct and waste. During his tenure at the DOJ, he chaired a committee overseeing $5 trillion in COVID-19 relief spending and led the Council of the Inspectors General on Integrity and Efficiency. He has also served as a member of the U.S. Sentencing Commission and was previously chief of the public corruption unit in the U.S. Attorney’s Office for the Southern District of New York.
The role of the Fed's IG has drawn attention due to its unusual appointment process—being selected by the Fed chair, not the president. Critics argue this limits true accountability, prompting some lawmakers to propose legislation requiring presidential nomination and Senate confirmation for the position.
Horowitz’s appointment follows a period of scrutiny surrounding the Fed, especially after a trading scandal involving senior officials raised questions about ethics and oversight. Former IG Bialek faced a contentious congressional hearing in 2023 over his response to the controversy and his compensation package.
With a reputation for independence and deep experience in federal oversight, Horowitz is expected to play a critical role in strengthening transparency and restoring public trust in both the Federal Reserve and CFPB. His leadership comes at a time when watchdog accountability is under heightened public and political scrutiny.