Chairman Hensarling Statement on Yellen Confirmation
January 6, 2014 -
House Financial Services Committee Chairman Jeb Hensarling (R-TX) made the following statement after Janet Yellen was confirmed today by the United States Senate as the fifteenth Chairman of the Federal Reserve:
“I congratulate Dr. Yellen on her confirmation. The Federal Reserve plays an important role in the health of our economy. Unfortunately, our economy continues to be stuck in the slowest, weakest so-called recovery of modern times.
“Since 2008, the Federal Reserve has held interest rates near zero and quadrupled its balance sheet to $3.9 trillion. It has, in many ways, served as an enabler to the Obama administration’s failed economic policy through an unprecedented campaign of monetary stimulus with three massive rounds of bond buying – a campaign described by one former Fed official as ‘the greatest backdoor Wall Street bailout of all time.’
“Based upon the economy’s subpar performance since the Federal Reserve embarked upon its stimulus more than five years ago, it is fair to conclude that rarely has so much been spent in pursuit of so little, and rarely has so much been risked in return for so little.
“That is why I hope Dr. Yellen will lead the Federal Reserve to adopt a more transparent and rules-based monetary policy that aims for price stability and long-term growth. Dr. Yellen has spoken favorably about such a rules-based policy in the past, saying it is what ‘sensible central banks do.’
“It is important for the Federal Reserve to operate in the most transparent, predictable manner it possibly can to better serve the American people, and our committee has an obligation to carefully scrutinize the Federal Reserve’s decisions and the way it communicates those decisions to the American people. As the committee embarks upon its most vigorous and sustained oversight of the Federal Reserve ever, I look forward to working with Dr. Yellen to accomplish these goals.”
Last month, the House Financial Services Committee announced its “Federal Reserve Centennial Oversight Project” which will include an aggressive series of hearings during 2014 that will culminate with the development of legislation to reform how the nation’s central bank operates.