McHenry to Chair Powell: I Urge You to Reject the Ideologues Who Put Their Social Agenda Ahead of Economic Prosperity
Washington,
March 8, 2023 -
Today, the House Financial Services Committee is holding its semi-annual hearing with Federal Reserve Chairman Jerome Powell. As Americans continue to struggle under the weight of Democrat-induced inflation, the Federal Reserve must stick to its narrow mandate—achieving sound money—rather than engaging in social policies pushed by the progressive left.
Watch Chairman McHenry’s opening remarks here.
Read Chairman McHenry’s opening remarks as prepared for delivery:
“Thank you, Chairman Powell, for testifying today.
“This week, you stated that the Fed will ‘stay the course until the job is done,’ to restore price stability.
“This is positive.
“But you know as well as I do that you’re facing a strong wind from the left.
“Democrats are pressuring the Fed to stray from its narrow mandate.
“It’s a page out of their same old progressive playbook: when they don’t have the votes to achieve something in Congress, they turn to regulators.
“And now, Chair Powell, they’re looking at you.
“President Biden’s cow-towing to the far-left is what got us into this inflationary mess. I urge you to reject the idealogues who put their social agenda ahead of economic prosperity.
“High prices continue to eat away at workers’ wages and retirees’ incomes.
“Since President Biden took office, we have experienced inflation at rates not seen since the early 1980s.
“Inflation rapidly accelerated after Democrats passed their so-called American Rescue Plan Act, which poured nearly $2 trillion of inflation fuel into the economy.
“By June of last year, the Consumer Price Index showed inflation skyrocketed from below two percent to nearly nine percent. And Personal Consumption Expenditures—the Fed’s preferred measure of consumer prices—ballooned to seven percent.
“Instead of being ‘rescued’ by Democrats, Americans were punished with pain at the grocery store and sticker shock at the pump.
“While inflation is now below its mid-2022 peak, it is persisting at rates well above the Fed’s target. It remains broad based and continues to hammer Americans’ pocketbooks.
“In fact, a recent Gallup poll shows half of the respondents say they are worse-off financially than a year ago.
“It’s clear that there’s still a long way to go in the effort to bring down costs. I look forward to hearing you reaffirm your commitment to that work today.
“Republicans also want to hear from you regarding some concerning developments at the Federal Reserve on the regulatory front.
“Recently, the Federal Reserve’s Vice Chair for Supervision announced a ‘holistic’ review of bank capital and the Fed’s regulatory regime.
“However, it seems that only a small group within the Fed know what this means, what it entails, how much of the review is being vetted by the full Board, and the type of quantitative analyses the Fed is performing.
“The Fed shouldn’t operate in the shadows, especially when the regulations in question can have broad and significant economic effects.
“It’s also unclear the motivations for the Fed’s holistic review, particularly when so many board members have stated that the banking system is very well capitalized.
“It also appears the Federal Reserve Board is laying the groundwork for climate policy to be implemented through Fed regulation with an opening salvo of a ‘scenario analysis.’
“Addressing an issue like climate change is important, but a policy that should originate in Congress—not the central bank.
“As you’ve said, the Fed needs to ‘stick to our knitting.’
“There is concern from many that the Fed is picking up new needles and knitting partisan sweaters.
“At such a precarious time for our economy here at home, and the global economy, that would be a mistake.
“Thank you again for being here today.”
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