Rep. Bill Huizenga
Chairman, House Subcommittee on Monetary Policy and Trade
Suggested FSOC is a tool of the Fed to press fiscal agenda. 60 new regulations, thousands of pages.
High degree of discretion… Fed makes it up as it goes, like Jazz.
Government knows best is not what is best for the economy as a whole.
The dual mandate allows the Fed to do things that go outside of what would be a strict monetary mandate — and what it can ultimately affect.
His bill HR 3189 will likely pass the House in the next few weeks, and then will head over to the Senate (where who knows will happen to it).
Aims to increase transparency and accountability of the Fed, and give more weight to the regional presidents. How large the audits would be is open. Emergency lending powers would be reduced. Five of seven governors and nine of twelve regional Fed Presidents would have to approve any emergency lending.
Fed would have to take a rules based strategy for monetary policy.
1) David Malpass: Would the bill change IOER?
2) Any audit of the IOER?
Not at present.
3) endthefed.info — goes into article 1.10 of the Constitution to have the states insist on commodity money — gold and silver?
How do we get back to a gold standard? How could we educate the public on its value? Would back money with a basket of commodities.
4) Torres of Bloomberg: what if the Fed buys more assets in another recession years from now?
Would lead to frustration. The Fed should not be in that business. Thinks many politicians are hypocritical because they tell the Fed what to do, and yet he gets accused of meddling with central bank independence.
5) Moderator notes that Elizabeth Warren wants to limit emergency lending — any chance for bipartisanship?
Quite possible, but banks will oppose it.
6) Alex Pollock: Sen. Shelby’s bill — how do you see his bill?
He doesn’t know enough to say, but he wants to get his bill through the House.
7) wouldn’t the Fed getting heavier regulation crash the equity markets?
This isn’t a question of that, everyone should have the same information and access to credit.
8) Can we keep Alexander Hamilton on the $10?
There are efforts to do that….
9) Buchanan suggested a monetary rule that would be in the Constitution?
They aren’t prescribing a rule. Only holding them to a rule that the Fed itself would specify.
10) What of the Senate Bill, and how will you work with it?
Speaker Ryan is handling the House well. We would like to do this on a bipartisan basis.
11) What to do with all of the reserves held at the Fed? Seiniorage?
Happy to take money away from Congress.