[Congressional Record Volume 168, Number 69 (Wednesday, April 27, 2022)]
[Senate]
[Page S2180]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                            Federal Reserve

  Mr. SCOTT of Florida. Mr. President, the Senate is considering 
several of President Biden's picks to sit on the Board of Governors of 
the Federal Reserve. I have already voted against two of these 
nominees. I believe they all should be voted down by the Senate.
  Under its current leadership, the Fed has lost the trust of the 
American people and failed to uphold its role as an independent body.
  I have been clear about my disapproval of the Fed's policies, 
especially its massive and its still-growing balance sheet. Both now 
and throughout recent history, the Federal Reserve has been behind the 
curve and far too late in taking action to keep America's economy 
stable.
  Its policies to sustain and grow such a massive disproportionate 
growing balance sheet are a perfect example of its failure to properly 
manage the economic needs of our Nation.
  For years, I have asked--I have urged--Chair Powell and members of 
the Federal Open Market Committee to reduce the Fed's unprecedented 
balance sheet. Nothing has changed. Month after month, we have watched 
the Fed continue to purchase billions in treasuries and mortgage-backed 
securities. There is still no plan to wind down and right size the 
Fed's balance sheet, which today, sits at nearly 40 percent of GDP.
  Before the pandemic in 2019, the Fed's balance sheet assets totaled 
just under $4 trillion. Today, it is more than double to nearly $9 
trillion dollars. That is more than 10 times the assets the Fed held in 
2007, when the balance sheet was under $1 trillion.
  The Federal Reserve's massive balance sheet is becoming a massive 
problem. When the Fed buys up treasuries and mortgage-backed securities 
and holds them like this, it is distorting the credit markets and 
allocation of capital, ultimately hurting our poorest families and 
Americans on fixed incomes.
  And look at how the Fed's policies have made homeownership 
unattainable for young people. These policies have helped drive up home 
prices, putting the purchase of a home further out of reach for young 
families across our Nation.
  Now, I will admit that the COVID-19 pandemic presented our Nation 
with historic challenges, but the Federal Reserve's overreaction and 
then refusal to react to changing economic circumstances over the last 
year is unacceptable. The Fed's mismanagement and their management 
failures have been especially disastrous during the Biden 
administration. Instead of fighting for the interests of American 
families, he has chosen to appease the administration hellbent on 
reckless, inflation-fueling spending.
  It is clear to me that the raging inflation crisis we are seeing 
across America is the fault of Joe Biden and Joe Biden alone. But the 
Fed's weak appeasement has helped grease the wheels in advancing 
Biden's reckless spending agenda.
  This isn't just my opinion. The Fed knows this is true. Just weeks 
ago, the San Francisco Fed wrote that the spending packages Biden 
pushed to allegedly counteract the effects of the pandemic actually 
fueled inflation.
  I have written letters, held meetings, and had phone calls with Chair 
Powell and members of the Federal Open Market Committee to express my 
concerns and demand action to shrink the balance sheet. Again, Chair 
Powell and the Federal Reserve have chosen to do nothing.
  Not one member of the Board of Governors has been able to explain to 
me why the balance sheet is so big and what size it should be. At every 
turn, when the Fed could have been fighting for American families by 
mitigating the long-term risks of its massive balance sheet and telling 
the truth about the terrible consequences of reckless government 
spending, it, instead, chose to appease Joe Biden, Wall Street, and the 
Democrats running Washington, all at the expense of American 
families. How does Biden reward the Fed for playing nice with him? By 
turning Chair Powell into his inflation scapegoat.

  Earlier today, in the Senate Commerce Committee, after I asked the 
administration when inflation would come back down, Secretary Raimondo 
deflected and blamed Chair Powell and the Fed.
  But here is my question: If the Biden administration really believes 
the Fed bears responsibility for inflation, why are they renominating 
these officials? Why aren't they putting people in who actually can 
solve the problem? It makes no sense, but that is the endless blame 
game the Biden administration likes to play.
  Americans are sick of weak policy in Washington. It is time for the 
Federal Reserve to start fighting for real Americans, not Washington 
politicians. It is clear that the Fed needs new independent and 
courageous leadership to truly address our Nation's economic problems. 
Weakness in Fed leadership has produced unsustainable monetary policy 
that threatens the long-term economic health of our country. It is the 
very thing I have been warning about for months.
  It is clear that the current leadership of the Fed just doesn't care. 
They don't deserve to hold these seats. They have lost the trust of the 
American people, and they should be replaced with individuals who will 
actually stand up for American families and protect the American 
economy.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts.