Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, delivered the following statement at a full Committee hearing entitled, “The Federal Reserve’s Semi-Annual Monetary Policy Report.”
Good morning, Chair Powell. Since your last visit, our country, under the leadership of President Biden, has made major progress to improve economic conditions, including adding a record 12 million jobs, reducing unemployment to its lowest rate in 54 years, while also reducing the deficit by $1.7 trillion dollars.
Unfortunately, many families are still struggling to afford basic necessities because of inflation. What’s more, interest rate hikes are making borrowing – especially for mortgages – outrageously expensive. Since I raised this concern for you in a November letter, rate hikes continue to have an outsized impact on housing costs, which are, as you know, a primary driver of core inflation.
But, Mr. Chair, I think you will agree that Congress also has a role. That’s why I’m somewhat disappointed that after two months, Republicans have taken no serious action to address inflation. By this time last Congress, House Democrats had passed the American Rescue Plan to provide relief from the ongoing pandemic, which included our Committee’s efforts to provide $70 billion for homeowners, renters, businesses, and first responders. If Republicans are looking for ideas, Committee Democrats have put forth additional bills, like the Build Back Better Act, to bring down costs for Americans, especially housing costs.
Even more concerning, we are just months away from an economic catastrophe beyond what we have ever seen, including spiking interest rates, massive job losses, and global instability. I’m talking about the threats by Republican leadership to force a default on our nation’s debt if we don’t agree to their demands to cut Social Security, Medicare, or other critical programs. You’ve urged Congress to take immediate action to raise the debt ceiling, but rather than focusing on this very real issue, the first bill that Committee Republicans brought to the floor instead suggested that Social Security and Medicare are socialist threats to America. Since then, we’ve considered legislation related to deregulating securities and banking laws, and countering threats from China, but Republicans have completely ignored the biggest economic threat to businesses, consumers and our economy – defaulting on our debt. Last month I wrote a letter to Chair McHenry urging him to take this matter seriously and hold a hearing, but I am still waiting for a response. I hope Republicans will listen today to the real consequences that even the mere threat of a default would have for everyone in this country.
And finally, I am so pleased that we are finally making progress on diversity and inclusion for key positions at the Fed, including last year’s historic confirmation of Dr. Lisa Cook to serve as the very first Black woman on the Federal Reserve Board. With the Board’s Vice Chair and Kansas City Fed President positions vacant, I think President Biden and the Kansas City Fed Board should build on this progress by seriously considering diverse candidates for these key positions.
With that, I yield back the balance of my time.
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