Hearing of Senate Banking Committee on Nomination of Ben Bernanke

Hearing of Senate Banking Committee on Nomination of Ben Bernanke

Thank you, Chairman Shelby.

I also want extend a warm welcome Ben Bernanke and his family and friends. This is the most significant nomination this committee will consider. The role of the Chairman of the Board of Governors holds great influence over our economy and financial system. The Federal Reserve is charged with conducting the nation's monetary policy with the goals of maximum employment, stable prices and moderate long-term interest rates. These goals can at times conflict, requiring a steady hand at the helm to keep us on a track towards long-term sustainable growth.

Two weeks ago, the Federal Open Market Committee again raised its target for the federal funds rate and the discount rate by 25 basis points - this was the twelfth straight increase in the federal funds rate. The release noted robust underlying growth in productivity, and temporarily depressed output and employment, due to elevated energy prices and hurricane-related disruptions in economic activity.

These observations reflect how hard we were hit this hurricane season, but they also appear to indicate a positive track for economic expansion in the coming years. While the outlook is certainly encouraging, I continue to be concerned about the slow pace of job creation particularly in my state of North Carolina.

North Carolina continues to experience dramatic losses in employment, especially in the traditional industries of textile and furniture manufacturing. The national economy may be trending positively, but we must continue to focus special attention on the areas where folks have lost their jobs with companies that struggle to compete with the dramatically lower cost structures. Congress continues to debate the pros and cons of free trade, and I believe we must work toward trade agreements that benefit American workers and consumers and support jobs and growth in our industries.

During my confirmation hearing many years ago to serve as Secretary of Labor, I spoke about the skill gap between skilled and unskilled workers. In the changing economic environment, this gap has widened, and there are fewer and fewer opportunities for lower skilled workers. We must do everything in our power to make sure that these folks don't fall through the cracks. As we discussed in my office, we must focus greater attention on educating our less skilled workers so they can take advantage of the new jobs that are being created. To this end, I believe that we should take steps to improve Trade Adjustment Assistance and continue to make strengthening our community colleges a very top priority.

I also remain, of course, concerned about high energy prices, the rising costs of raw materials, and the growing size of our trade deficit. In spite of these concerns, however, I have confidence that the very forces that stimulate economic growth - free but fair trade, ever-improving global communications, higher education and training for our workforce, and of course, hard work - these forces indeed will put us on a course towards greater opportunity for North Carolinians and for all Americans.

Mr. Bernanke, as we've all said, has a keen intellect and impressive credentials, and he comes before us with an extensive list of accomplishments, a wealth of experience, and a reputation for consensus building, particularly during his time on the Board of the Federal Reserve. And, I tend to think that his good Carolina roots are a great strength as well.

Ben Bernanke has my strong support for Chairman of the Board of Governors of the Federal Reserve. While I'm sure the committee has many questions, as I do, I hope he will earn our swift approval.
Thank you.

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