U.S. Rep. Pat Tiberi (R-OH) welcomed the Fed’s move toward normalized interest rates, as well as its outlook for a strengthening economy.
The Federal Reserve announced on Wednesday it would increase the target federal funds rate to between 0.5 percent and 0.75 percent, the first rate increase this year.
“The more clarity the Fed can provide about their intent, the better for private investment and job growth,” Tiberi, the vice chairman of the Joint Economic Committee, said.
“In the coming year, I look forward to working with my colleagues to overhaul our tax code and reduce overly burdensome federal mandates. Pro-growth legislation combined with more transparent monetary policy will help drive our economy forward and open up opportunity for all Americans,” Tiberi said.
U.S. Rep. Bill Huizenga (R-MI), the chairman of the House Financial Services Subcommittee on Monetary Policy and Trade, said normalization of interest rates is inevitable, but the Fed continues to “slow walk the process” by maintaining artificially low rates.
Previously, the Fed lowered rates to near zero in 2008 where it stayed for seven years. In 2015, the Fed raised the federal funds rate by 0.25 percent.
“Adopting a rules-based strategy for monetary policy would not only strengthen our economy but improve opportunity for millions of Americans,” Huizenga said.
“The ad-hoc approach currently being employed by the Fed continues to create uncertainty for consumers and investors alike which acts as an anchor on our economy. I am hopeful that with a Trump administration soon in the White House, House-passed legislation such as the FORM Act and the Financial CHOICE Act will gain even greater traction as positive ways to improve our nation’s monetary policy.”
Huizenga’s FORM Act legislation would reform the Federal Reserve by making the institution more accountable and transparent to the American people.
The Financial CHOICE Act, meanwhile, would end the Dodd-Frank Act’s taxpayer-funded bailouts of large financial institutions, imposes tougher penalties for those who commit financial fraud, and demands greater accountability from regulators.