American financial system is 'not doing enough' to protect US from banking cyber attacks: Fed Chair

Federal Reserve Chairman Jerome Powell revealed the one thing that keeps him up at night is the possibility of a cyber-attack that could bring the American economy to its knees.

In an interview with CBS's "60 Minutes," Powell said that there are some protections in place but they're not doing enough.

"The banks we supervise are required to have plans in place and state of the art, you know, technology," he told CBS newsman Scott Pelley. "I would say for cyber risk though, I’ve never felt a time when I -- when I think we’re doing enough."

"I have the sense that I just hit on the thing that keeps you up at night," Pelley said.

"I would say, of the risks that we face, that certainly is the largest one," Powell admitted, saying it has become a top priority for him.

"The kinds of risks that we faced in the financial crisis are very real, but we know, I think, generally what to do there. Cyber is a relatively new kind of a risk with nation-state actors, and it’s one where the playbook is still being developed in real time," he explained.

Cyber research funding had a tough go in the Trump budget. The White House budget planned to boost the National Protection and Programs Directorate cyber research funding, but it slashed digital security research within the DHS Science and Technology Directorate, dropping it from $93.5 million to $22.8 million.

The National Science Foundation also lost significant research dollars as did the National Institute of Standards and Technology. Trump seems supportive of some cybersecurity but only if it's under the Pentagon budget.

Watch the interview below: