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McHenry to Chair Powell: Millions of Americans Need to Be Rescued From Democrats’ American Rescue Plan

Washington, Jun 23 -

Today, the House Financial Services Committee is holding its semi-annual hearing with Federal Reserve (Fed) Chair Jerome Powell. While the Fed continues its fight to rein in Democrat-induced inflation, the Biden Administration and Congressional Democrats must abandon their reckless priorities that will undermine the Fed’s response and push consumer prices even higher.

Watch Republican Leader Patrick McHenry’s (NC-10) opening remarks here.

Read Republican Leader McHenry’s opening remarks as prepared for delivery:

“Thank you, Madam Chair.

“And thank you, Chair Powell, for being here.

“A year ago, President Biden tried to buy support by signing into law a $2 trillion dollar stimulus bill.

“But all he did was sell out ordinary Americans, who are now repaying all that ‘free money.’

“Inflation is the worst it’s been in 40 years.

“American families are rethinking their long-awaited summer vacations because they can’t afford $5-dollar-a-gallon gasoline.

“Costs are spiraling out of control for everything from housing and food to airfare, cars, medical care, and clothing.

“Democrats are still on the hunt for a scapegoat.

“They’ve blamed oil companies, the war in Ukraine, and supply chain issues in Asia.

“But let’s be clear, it’s the Democrats’ trillions in wasteful spending that resulted in higher grocery bills and soaring gas prices.

“President Biden continues to deny that the so-called American Rescue Plan contributed to inflation—recently calling the idea ‘bizarre.’

“Well, economists across the ideological spectrum—from former Clinton Treasury Secretary Larry Summers, Jason Furman to Michael Strain—don’t think it’s bizarre.

“Even the left-leaning San Francisco Fed found that the ARP contributed to price increases.

“So now, millions of Americans need to be rescued from the Democrats’ American Rescue Plan.

“I’m confident Chair Powell is taking this emergency seriously.

“As I have said many times before, he’s the right man for this job.

“But how the Fed manages the next few months will be as critical as any other period during the last four decades.

“No one at the central bank was prepared for prices rising at a clip of 8 percent, with even core inflation running at 6 percent.

“Republicans have long warned about the size of the Fed’s balance sheet, but it grew by nearly a trillion dollars over the past 12 months alone.

“As Congresswoman Wagner pointed out in a previous hearing with Chair Powell, the Fed’s official monetary policy strategy talks about averaging inflation of two percent.

“But this is a goal that keeps diverging from reality and the FOMC’s economic projections.

“Simply put, the Fed has its work cut out for it.

 “Lastly, I want to address the left’s ongoing efforts to expand the Fed’s dual mandate. 

“Republicans have been on record opposing this, and I hope that the skyrocketing inflation unleashed under the Biden Administration puts an end to these discussions.

“It’s out-of-touch for Democrats to keep pushing mission creep at the Fed when Americans are struggling to feed themselves and get to work.

“The Fed is a serious place with serious business.

“It needs to focus on the middle class—not the political class. 

“This was true before inflation broke out, and it’s all the more obvious today.

“I hope Chair Powell will deliver that message to his colleagues throughout the institution.

 “Again, I want to thank Chair Powell for his testimony.

“Democrats have left him a terrible mess to clean up.

“I yield back.”

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