Rep. Jeb Hensarling (R-TX), chair of the House Financial Services Committee, published comments on Wednesday addressing the Federal Reserve’s decision to raise short-term interest rates.
“Sustainable, market-based interest rates are better for consumers and investors, and our economy would be healthier if the Federal Reserve were more predictable in its conduct of monetary policy and more transparent about its decision-making,” Hensarling said.
“While today’s rate hike was expected, what remains unclear is what comes next. If Fed reforms that are part of the Financial CHOICE Act were to become law, hardworking Americans would have more certainty about what comes next so they could better plan for their future.”
Hensarling argues that the Financial CHOICE Act would serve as a stable foundation for economic growth, requiring the Federal Reserve to be held to a higher standard of accountability, and offering investors and consumers a clearer picture of the future on which to base decision-making in the present.
“While the Federal Reserve wishes to avoid greater public scrutiny of its conduct of monetary policy, that is not how open democratic societies operate,” Hensarling said. “Requiring the Federal Reserve to be more accountable for its actions and to operate with more transparency is certainly not asking too much.”