Johnson Presses Bernanke During Fed Chairman's Semiannual Address To Banking Committee
Press Release
Johnson Presses Bernanke During Fed Chairman's Semiannual Address To Banking Committee
U.S. Senator Tim Johnson (D-SD) questioned Federal Reserve Chairman Ben Bernanke about economic policy issues at a Senate Banking Committee hearing today. Johnson and other members of the Banking Committee use the Federal Reserve Chairman's semiannual reports to Congress as an opportunity to hear the Fed's economic forecast, as well as discuss fiscal and monetary policy.
"I am committed to our nation's economic recovery and to ensuring the safety and soundness of the financial sector without placing unnecessary burdens on the taxpayer," Johnson said. "In the long run, the best way to protect taxpayers is to make meaningful reforms to the financial system to prevent situations like the one we are currently experiencing."
Johnson, who is Chairman of the Banking Committee's Financial Institutions Subcommittee, pressed Bernanke on the creation of a new federal agency with the specific purpose of protecting consumers from dangerous financial products. Johnson wanted to know if Bernanke believed the Fed has been effective in protecting consumers and if the creation of a new agency, like President Obama is proposing, would be more effective.
"We have learned from our current economic situation that there are glaring regulatory gaps in our system," Johnson said. "We need to know if the creation of a consumer protection agency is the best way to fill those gaps."
Johnson also asked Bernanke about the status of the housing market and about the effects that new regulations will have on community banks and credit unions.
"Community banks and credit unions are very important in South Dakota and they had little to do with our current economic crisis," Johnson said. "We need to make sure they are not punished for the recklessness that occurred on Wall Street."
As a senior member of the Banking Committee, Johnson has used his position to question regulators, financial institutions and consumers as proposals move forward to improve the economy and make changes to the financial sector's regulatory structure.
Source