Congressman Gregory W. Meeks (D-NY), Chairman of the Subcommittee on International Monetary Policy and Trade, and Congressman Mel Watt (D-NC), Chairman of the Subcommittee on Domestic Monetary Policy and Technology, will hold a joint subcommittee hearing on Thursday, May 20, 2010 about the role of the International Monetary Fund and Federal Reserve in stabilizing Europe.
This hearing will focus on the global economic crisis that began in 2008 with the subprime mortgage meltdown in the United States and how it has spread around the world and contributed to an unprecedented sovereign debt crisis in many nations, particularly in Europe. The witnesses will discuss the role of the federal of the Federal Reserve, IMF mission, IMF funding and moral hazard in working to provide solutions to alleviate this financial crisis.
"America, and the world is recovering from one of the worst global economic crises since the great depression. Europe has been hit especially hard. Europe represents a quarter of global GDP and is a major source of demand for U.S. exports. European companies hire millions of Americans. A prolonged and deep recession in Europe would undermine America's own current economic recovery. It is therefore critical that the U.S. provides support to Europe in its efforts to quickly stabilize financial markets, prevent contagion, and properly address sovereign debt issues," stated Congressman Meeks.
Congressman Watt said, "I look forward to hearing from the witnesses on how the Federal Reserve and International Monetary Fund can stabilize European financial markets. In particular, I want to shine a light on the Fed's currency liquidity swaps and other policy responses and their potential impact on U.S. taxpayers."