Powell Says Fed Has No Role in Deciding on Payments by Treasury

Federal Reserve Chair Jerome Powell told lawmakers the US central bank makes no decisions related to outgoing government payments, following a controversy over control of the Treasury Department’s system used to pay contractors, federal workers and other recipients.

“We make no judgments whatsoever, those are all made upstream from us,” Powell said Tuesday before the Senate Banking Committee. Powell said the Fed acts only as the Treasury’s fiscal agent, processing federal payments on its behalf.

Asked whether that payments system is safe, Powell said, “I believe it is.”

Powell’s comments come as the Treasury Department has come into the spotlight ...