DAINES QUESTIONS FED CHAIRMAN ON LONG-TERM DEBT PROPOSAL

Hearing

“Chairman Powell good to see you. I can tell you Montanans are continuing to see the impacts across the board from inflation that’s been brought on by the policies of this Administration, and by my colleagues across the aisle, and I commend you for the job you have done in trying to rein in inflation and I encourage you to continue to fight despite political pressures you may face. Last time I checked it’s gonna get a lot more political around here between now and November.

I’m also encouraged, contrary perhaps to my colleague from Massachusetts, I’m encouraged by your comments yesterday that there will be broad changes to the Base III proposal, which as it’s currently proposed, would have significant detrimental impact to credit cost and availability to small businesses. And lastly, I commend your answer yesterday, that the Fed is not a climate agency. And considering the impact of climate change is not a factor in achieving your given mandate congressional mandate of maximum employment and stable prices.

Mister Chairman I recently joined many of my colleagues in writing to you about my concerns about the long-term debt proposal that would mandate regional banks issuing new long-term debt. I’m concerned that this will have a disproportionate impact on smaller regional banks, because they’re required to hold their long-term debt at both the parent holding company and insured depository bank levels. Could you explain how this aligns with the tailoring requirements set forth in the financial reform bill that we passed back in 2018, Senate Bill 2155”

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