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McHenry Continues Push for Regulatory Relief, Financial Inclusion, & Innovation at Fed Hearing


Washington, July 10, 2019 -

WASHINGTON – Today, the House Financial Services Committee held its semi-annual hearing with Federal Reserve Chairman Jerome Powell on monetary policy and the state of the economy.

Republican leader of the Committee, Patrick McHenry (NC-10), delivered opening remarks highlighting the positive economic trends as a result of Republican tax cuts and regulatory reform. To ensure continued economic growth, the Ranking Member again expressed the need for the Fed to implement targeted rulemaking to provide relief to financial institutions, and most importantly, the Americans who rely on them. Ranking Member McHenry went on to reiterate his concerns regarding global economic uncertainty, particularly the risks posed by the Chinese state-run economy, that could create headwinds for our economy here at home.

Watch the Ranking Member’s full opening statement here or by clicking on the image below.

Ranking Member McHenry: “Let me highlight China in particular… When the world’s second largest economy is a one-party state without the rule of law, without transparent decision-making, where monetary policy and the allocation of capital bends to politics and cronyism … then we all need to focus on that country and its regime as a unique source of risk to global stability and global growth. So, I would encourage the Chairman to work with his colleagues, both here and abroad, so that we have a sufficient understanding of China, as well as sufficient tools within central banks if something were to go wrong.”

The Ranking Member questioned Chairman Powell on a range of topics, including what macroeconomic data would inform Powell’s decision as to whether the Fed would lower interest rates later this month. Additionally, ahead of the July 17th committee hearing on Facebook’s digital-currency project, Libra, the Ranking Member asked the Chairman what regulatory barriers exist that deter blockchain technology from innovating in the United States. Ranking Member McHenry also pointed to the opportunity for increased financial inclusion, if the technology is employed correctly.

Watch Ranking Member McHenry’s questioning of Chairman Powell here or by clicking on the image below.

Ranking Member McHenry: “There is an opportunity here for financial inclusion benefits and innovation benefits if it worked well, is there not?”

Chairman Powell: “There is that possibility. And as I mentioned, that is the main benefit the company is holding out. I also mentioned that we are open to financial innovation, we just want it to take place in a safe and sound way.”

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