McHenry: Democrat-Led Washington, Democrat Regulators, and Democrat Policies are Failing the American People
Washington,
May 12, 2022 -
Today, the House Financial Services Committee is holding a hearing with Treasury Secretary Janet Yellen in her capacity as Chair of the Financial Stability Oversight Council (FSOC). Committee Republicans will emphasize how FSOC—like other Biden financial regulators—must focus on maintaining the safety and soundness of our financial system, rather than exceeding its statutory authority by pursuing radical policies.
Watch Ranking Member Patrick McHenry’s (NC-10) opening remarks here.
Read Ranking Member McHenry’s opening remarks as prepared for delivery:
“Thank you, Madam Chair. I’m glad to see you made a speedy recovery and happy to have you back at the Committee.
“Secretary Yellen, thank you for being here today.
“The Financial Stability Oversight Council, or FSOC, is charged with identifying and responding to emerging risks to our financial system.
“FSOC does not, and should not, impose partisan policies.
“So today, Secretary Yellen, we should be focused on: the challenges posed by Russia’s invasion and the consequences for the global economy; the impact that China’s lockdowns and economic issues will have on the financial system and broader economy; the importance of protecting the financial system from bad actors and foreign adversaries, including cyber threats; and the performance of domestic financial markets over the last several years.
“But this isn’t FSOC’s agenda.
“FSOC seems to be an arm of the Administration rather than an objective body evaluating real risk to the financial system.
“In fact, much of what FSOC has proposed to examine and what Democrats will discuss today is part of the left’s agenda.
“Secretary Yellen, the economy is at a crossroads. Democrat-led Washington, Democrat regulators, and Democrat policies are failing the American people.
“First-quarter GDP came in at a negative 1.4%.
“Domestic productivity cannot keep pace with demand.
“Democrat policies helped fuel a surge of imports and a decline in business inventories, both of which detract from GDP.
“Adding to the problem is the record 11.5 million jobs available.
“Yet, workers are still on the sidelines because inflated wages are eroding the ability of the private sector to hire employees to match production demands.
“The root of this problem is out-of-control Democrat spending, which has created persistent inflation.
“In fact, just yesterday the Bureau of Labor Statistics announced inflation rose again in April. It’s now at 8.3% over the past year, remaining near a 40-year high.
“Inflation is killing American consumers’ household budgets.
“But instead of addressing the issues rising prices are creating for the economy and Americans’ financial wellbeing, Democrats’ focus is elsewhere.
“Deep down they know their spending spree is hurting America. But pulling back all that ‘free money’ isn’t popular…and mid-terms are looming.
“You would think my colleagues across the aisle would take this moment and reflect on their agenda.
“Instead, they are doubling down and using FSOC to advance their radical policies.
“Don’t like something? Just have FSOC label it a ‘risk’ and regulate it away!
“Before you know it, progressive policies will force lending decisions in favor of those customers who activists and progressives support, while law-abiding American businesses will be forced to close to appease the radical left.
“Let’s turn to digital assets and stablecoins.
“This week we’ve seen dramatic volatility within a particular algorithmic stablecoin.
“I want to be clear not all stablecoins and not all digital assets are the same, nor should they be regulated the same.
“Beginning last year, I made clear this Committee needs to come together to establish a clear regulatory framework for stablecoins and the broader digital asset ecosystem.
“It’s time for Congress to act to give these markets the stability they deserve.
“New technologies deserve time to be understood before being labeled a risk.
“I yield back.”
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