Patrick McHenryChairman

Washington, June 17, 2020 -

Today, the Financial Services Committee is holding a virtual hearing with Federal Reserve Chairman Jerome Powell on the state of our economy and the Federal Reserve’s actions to respond to the economic crisis caused by the global health crisis.

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

Ranking Member McHenry’s opening remarks as delivered:

“Thank you, Madam Chair and Chairman Powell, welcome back before the Committee. Thank you for virtually being here, and for virtually taking our questions.

“The circumstances are obviously much different than where we were in February when we last met.

“I would like to commend you and the Federal Reserve for your activities and engagement in this unprecedented time.

“I believe it was the Fed’s rapid and decisive action that prevented the worst effects of this economic catastrophe brought about by the coronavirus and helped stabilize the market. The Fed, as a firefighter, was able to stave the flames, to contain the flames, but we know that is not a permanent circumstance for the Federal Reserve to be in that firefighting phase.

“Using its 13(3) emergency lending authority, the Fed signaled to American households and to businesses that it will do everything in its power to respond to the economic crisis that resulted from this global health crisis.

“The Fed announced nine lending programs to help support the proper functioning of our financial markets and our economy. Smartly done.

“Many of these facilities are in operation today. However, some of those facilities aren’t even yet operational—but markets were calmed just by the announcement from the Fed. So, I want to commend you for that decisive action in this early phase of what we know are challenging times for the American people.

“I believe that we must keep these facilities focused on broad-based support of our economy and ensure that they are responsive to economic conditions, not the political ones.

“I also want to express a point you made last week, and I believe is worth repeating:

“As the Fed embarks on protecting the economy through careful and targeted use of its powers, Congress must be realistic about what the Fed can and cannot do.

“The Fed is a lender. The Fed is a lender of last resort. It is not responsible for fiscal policy—that’s Congress’ action, and it is not a piggy bank to be used to fund the whims of Congress. 

“We must ensure the Fed remains laser focused on monetary policy and not become a testing ground for ideological experiments or unproven theories.

“Unconventional monetary proposals should be considered with the utmost care, particularly ones that have mixed records in other major economies.

“We should be focused on the tens of millions of Americans who remain out of work through no fault of their own.

“According to the Fed’s economic projections, we will still be facing unprecedented unemployment for the rest of this year, nearly twice the unemployment rate we experienced just as recently as February.

“Creating an economic recovery that grows jobs must be priority number one.

“But the Fed cannot do this alone.

“The Fed cannot train workers to match them more effectively with job openings. Congress has to legislate that.

“Congress is responsible for enacting pro-growth policies—not the Fed.

“And the Fed cannot modernize our education system or change tax policy. That’s Congress’ role.

“Only Congress can legislate these policies, which is why we need bipartisan solutions to ensure that our economy remains strong and comes back stronger than ever.

“We should be identifying the metrics that will be used to determine the ongoing need for emergency lending as well.

“Chairman Powell, I urge you to continue to be forward-looking as you have been, since before the public actually knew what the coronavirus was, you were taking action. And so, I anticipate that the challenges we may face in six months, or a year will be enormous, but I commend you for looking ahead.

“While I hope we are through the worst, it is clear that more must be done. However, we should all keep an eye toward the aftermath and how we plan to right-size policies once again to ensure the long-term stability of our financial system.

“With that, I would like to thank you again for being here. I look forward to your testimony and questions, I yield back.”

Watch the virtual hearing here.

Visit Financial Services Committee Republicans’ website for additional resources and updates on efforts to mitigate the economic impact of coronavirus on consumers.