[Congressional Record Volume 142, Number 88 (Friday, June 14, 1996)]
[Senate]
[Page S6258]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        FEDERAL RESERVE NOMINEES

  Mr. BOND. Mr. President, the reason I rise today, I want to address a 
couple of related subjects, things that we are working on, and they 
have to do with some of the debates that have been going on about the 
nominees for the Federal Reserve.
  I have the pleasure of having as one of my constituents a fellow 
Missourian, Dr. Laurence Meyer, who has been nominated to the Federal 
Reserve Board. When we get to the discussions of the Federal Reserve 
nominations next week, I want to make the case very strongly that Dr. 
Meyer has justly earned a reputation as a leading economist. He has 
played a key role in the development and expansion of the economics 
department of Washington University. He has been recognized repeatedly 
by faculty, students, by the public at large, and by his own colleagues 
as a leader in these fields. His is an excellent nomination. I also say 
that we are very fortunate that the President has proposed renomination 
and he has agreed to accept the current Chairman of the Federal Reserve 
Board, Chairman Alan Greenspan. During his 8-year tenure, economic 
performance through administrations, Republican and Democrat, has been 
outstanding because inflation has been kept under control.

  Again, I want to address more of Chairman Greenspan's accomplishments 
later on. But I want to straighten out a couple of misconceptions that 
have been raised by others on this floor yesterday in their debates 
about the Federal Reserve. They seem to think that growth in this 
country is slow because of the Federal Reserve. Mr. President, the 
Federal Reserve job, as the chief monetary regulator, is to deal with 
monetary policy. Monetary policy can be a brake or an accelerator, but 
it is not the essential engine that drives the economy of this country. 
That is fiscal policy and the opportunity for this economy to grow. We 
have had a major hit to the engine of our economy. It is a hit that has 
happened over the years in terms of running up the deficit. This 
deficit has been out of control. We have raised $5 trillion worth of 
debt that sits on the backs of our children, our grandchildren, and 
future generations, and it serves as a great drag on the economy right 
now.
  In addition, in 1990 and 1993, we put heavy burdens of taxes on the 
productive sector--taxes on savings and investment, taxes particularly 
that hit the small businesses that I have the pleasure of serving on 
the Small Business Committee.
  Yesterday, you would have thought that taxes and deficits did not 
matter, that slow growth was the only burden that was the legacy of the 
Federal Reserve Board. Well, that is not true. The Federal Reserve has 
kept inflation under control. We need to deal with the deficit. Then we 
need to deal with taxes that discourage investment and savings.
  That is why the third nominee for the Federal Reserve is important. 
Dr. Rivlin is currently the Director of the Office of Management and 
Budget. She has presented, on behalf of the President, a measure, the 
budget of the President of the United States, so that when the 
Congressional Budget Office scores it and applies a trigger the 
Congressional Budget Office said is necessary to get to a balance in 
2002, they can claim that under the Congressional Budget Office scoring 
and applying the trigger that the budget will get to balance in 2002.
  The problem is, as I have outlined on this floor before, I, in the 
role as chairman of the appropriations subcommittee, have asked the 
agencies that would be forced to make those cuts in future years how 
they plan to make them, and they have been advised by the Office of 
Management and Budget that they are not serious about it.
  Mr. President, as I have pointed out, we have addressed letters to 
Dr. Rivlin, questions as to whether the administration is serious about 
balancing the budget. Do they have a second set of books that has cuts 
in a lot of other agencies? The Veterans' Administration has told us 
they are exempt; EPA, NASA, the agencies that I have spoken to have 
said the cuts are not going to fall on them. Where are they going to 
fall? Are we serious about the deficit?
  We are waiting to hear whether the Office of Management and Budget 
honestly believes it can implement and will begin planning for the 
reductions in spending necessary to balance the budget.
  That, in my view, will depend upon how I vote, at least for one, on 
the confirmation of the Budget Director to be a Member of the Federal 
Reserve Board.
  I thank the Chair. I yield the floor.
  Mr. COVERDELL. Mr. President, it is my understanding that the 
Presiding Officer has some business before the Senate. I am going to 
suggest the absence of a quorum so I might relieve the Chair.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. INHOFE. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Coverdell). Without objection, it is so 
ordered.
  Mr. INHOFE. Mr. President, I have a couple of comments to make about 
the comments that were made previously by the Senator from Texas. 
Before that I have a little bit of business to take care of of a 
different nature.

                          ____________________