Chairman Hensarling Discusses Federal Reserve Oversight, Dodd-Frank Anniversary on CNBC
“Dodd-Frank has ensured that the big banks have gotten bigger, the small banks have gotten fewer, the taxpayers have gotten poorer, and our economy is less robust.”
Washington,
July 17, 2014 -
House Financial Services Committee Chairman Jeb Hensarling appeared this morning on CNBC’s Squawk on the Street to discuss the Committee’s Federal Reserve Centennial Oversight Project and the fourth anniversary of the Dodd-Frank Act being signed into law.
Hensarling on yesterday’s committee hearing with Federal Reserve Chair Janet Yellen and the Federal Reserve Accountability Act:
“Earlier in her career as a central banker, in referring to one monetary policy rule in particular -- the Taylor rule -- she said ‘that's what sensible, central bankers do.’ So I suppose she has the right to reverse herself, but there's been ongoing studies for many years about where does the Fed do the best job of promoting long-term price stability and maximum employment. I think the overwhelming weight of the evidence is with a rules-based policy, and the Act that you talked about is very simple.”
“The Fed has absolute discretion, absolute discretion, on setting monetary policy. They can change it. They can deviate from it. They just need to explain to the rest of us what they're doing and holding it up to public scrutiny. So it's really about transparency and accountability.”
Hensarling on the fourth anniversary of the Dodd-Frank Act:
“…I think there's a growing consensus, including the consensus of the President of the United States of America, that Dodd-Frank did not end too big to fail and too small to matter. So before this Congress is over, our committee has done a lot of work on that, but at the end of the day Dodd-Frank has ensured that the big banks have gotten bigger, the small banks have gotten fewer, the taxpayers have gotten poorer, and our economy is less robust.”
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