Is authorized to declare recess of the committee at any time come in all members will have five legislative days within which to his extraneous materials for inclusion in the record. The hearing is for the purpose of receiving the semiannual testimony of the chair of the board of governorboard of govere Federal Reserve system. On the conduct of Monetary Policy and the state of the economy i now recognize myself for three minutes to give an opening statement. After eight years in the largest Monetary Policy stimulus in the history and the most unconventional Monetary Policy in our history, americans recently received disappointing Economic News yet again. It is official, the economy grew at a measly 1. 6 in 201 2,016thn our historic norm is twice that. That takes eight years of subpar growth in eight years of stagnant paychecks and eight years of him replenish savings. Notwithstandinnotwithstanding tn that the fed to come and notwithstanding the personnel. After eight years, there is a zero evidence that a zero Interest Rate and in the wouldve the federal Balance Sheet beats to a healthy economy. What also hasnt changed in eight years as the fed continues to unlawfully paid above market Interest Rates to some of the nations largest banks in order to prop up the select credit markets. This very well could be fueling asset bubbles and is harming the ability of the Market Participants to accurately price risk. The foray into the fiscal policy clearly threatens the federal Monetary Policy independence which should be preserved. What also hasnt changed in eight years ag years is on the y side, the federal figuratively if not literally has taken up the seats in the bank borders. This means the unelected washington bureaucrats can literally direct gets credit in our society as opposed to the competitive markets. I will continue to say it, we must be vigilant to ensure the central bankers do not want them to become the central planners. Fortunately, theres Something Big that has changed in the last eight years, and that is an intervening election and the prospect of three new members of the board of governors. The National Federation of independent business reports that optimism on mainstream sport in the wake of the election and the optimism index jumping up off your high. Likewise, the number of americans that say the nation is on the right track has risen by 15 since the election. Clearly americans have a newfound expectation that our economy will gro would grow hear with different policies coming out of chicken. And i believe the last eight years have shown that no amount of Monetary Policy stimulus can make up for the fiscal policy had friends of a cumbersome field of regulatory state and uncompetitive tax code of obamacare and dodd frank. All of these must be remedied and changed if we will have a healthy economy for all in the Bank Bailouts for non. Building the healthy economy for all requires changes at the fed. We must have a more predictable, discipline and transparent Monetary Policy. Policy. Policy. The socalled speed on Monetary Policy of today says nothing about which data matters but alone how they matter. This compromises the kind of policy transparency and predictability is necessary for the Household Wealth to grow and American Companies to create jobs. Something else thats changed in the last eight years as the introduction of the reforms included in the financial choice act which again is to restore the independence and promote Economic Growth. The nobel prizewinning economist former treasury secretarys and former senior Economic Policy officeholders have said when they endorsed the financial choice act of the bute reforms ensure a Monetary Policy framework that is david attended the consistent and predictable. The financial choice act will help consumers and investors a better decisions in the present and form expectations about the future and i look forward to the passage and bracket is the Ranking Member performance for an opening statement. Thank you mr. Chairman and chair yellen for testifying today. Each day is a new side to the co episode at the white house working families across the country are reminded that our hardfought games to create more than 16 million private sector jobs come up with wages come to stabilize the Housing Markets, raise wall streets peer to practices and make Affordable Health care accessible are in jeopardy. Trump has already shown america that what he is all about has taken steps to roll back the reform based on the false premise that they do not have the ability to ignore the National Federation of independent businesses serving and shoving back. 96 of the Small Businesses said they are borrowing needs are satisfied. In addition to rolling back the financial projections, they moved to eliminate safeguards that protect americans planning for retirement from being ripped off by financial advisors. Repealing the plan to cut the mortgage insurance premiums that would have saved homeowners 500 a year called the tax cuts for the rich at the expense of the poor for 28 Million People. With the Republican Leaders in congress and cutting the Social Security medicare threatened a trade war with two of the largest trading partners adopting an agenda taken altogether these policies will shrink our economy can worsen inequality, left inflation, reduce exports of eliminate jobs, exclude federal budget deficits and ultimately steer us in the direction of another great depression. To attack the policies reflecting from their own failure to provide a fiscal stimulus. To reject the partisan politics and bad decisionmaking in deed republicans in this committee have sought to weaken the independence and have called for changing the policy decisions to a mathematical formula that would harbor the ability amid the persistent shock. Three of the 9 million americans lost their jobs and find the Unemployment Rate hit 10 while the economy has made significant gains, hardworking American Families simply cannot afford another great procession despite the progress that we hav have te to come in many communities across america continue to struggle particularly the minority communities that are disproportionately hit by the crisis lost 52 of their wealth to made for the vulnerable communities your state leadership and independent data that advocates for the interest of all americans is now more important than ever. I yield back the balance of my time. Been gentle man from kentucky of the Monetary Policy and the trade subcommittee for two minutes. Thank you mr. Chairman in november the American People delivered a loud and clear message that they want major changes in washington with the governors resignation to president will have an opportunity to make major changes at the fed filling in for vacancies on the board of governor including the vice chair of supervision. Many Financial Institutions in my district and around the country are concerned that they may cram through the regulations before the governors are confirmed. Given the avalanche of red tape produced and the disproportionate costs imposed on the Small Community banks, it is imperative the Federal Reserve refrain from issuing any regulations until the governors are confirmed. As important, they need a new opportunity to examine the unconventional monetary policies since the beginning of the recovery in 2009, the improvisational policies including the near zero Interest Rates and the quantitative easing and befor before and afte had our Balance Sheet failed to deliver the predicted results. The gdp growth in the Obama Administration averaged 1. 8 well below the growth forecast by the fed and not even close to the 4 growth average in the previous recoveries. The American People are ready for a change from the unconventional unpredictable policies and a change from the inaccurate projections of growth from disappointing economic results. Its time to begin shrinking the Balance Sheet and easy money policies that fueled and shift to a firmly ground policy that will share price stability and conditions for growth to paraphrase Milton Friedman its time we have a larger role that can perform asking you to accomplish the tasks that cannot achieve and as a result preventing you from making the contribution that it is capable of making. Thank you mr. Chairman and madame Ranking Member. Welcome. The new administration enters with a tailwind of Economic Growth that is packed with 83 months of continuous private sector job growth and an unemployment level. We do have a strong economic condition to build upon. And the legislative framework that has protected the consumers and strengthened that has protected the consumers including the regular progress and allow for the growth in areas such as the workers wages that have been swif slowed recoy and in particular to address the nature of growth the United States still has pockets of poverty in urban and Rural Communities and i look forward to hearing your comments and appreciate your attendance at the kennedy. Welcome back and with that i will yield back. Today w we welcomed the testimony of the honorable janet yellen. Other members of the committee im pleased to present the semiannual Monetary Policy report to the congress. I will briefly discuss the current Economic Situation and outlook. The economy has continued to make progress. The job gains averaged 90,000 per month over the second half of 2016. Those bring the employment since the trough in early 2010 to nearly 16 million the Unemployment Rate stood at 4. 8 in january. They had the peak in 2010 and its now in line with the median of the federal open Market Committee participants estimate. The broadest measure of the utilization which includes those attached in the labor force and people that are working part time but would like a fulltime job is also to continue to improve over the past year. In addition its picked up relative to its pace years ago. A further indication that the job market is tightening and importantly improvements in labor markethelabor market in rs have been widespread for all major Demographic Groups including africanamericans and hispanics. Even so it is discouraging the rate for those minorities remaining significantly higher than the rates for the nation overall. Ongoing gains have been accompanied by the expansion and economic opportunity. Theres 1. 9 last year. The Consumer Spending has continued to rise at a healthy pace supported by steady income gains. This sentiment in the lower Interest Rates in last years sales had the highest annual total on record. In contrast, business was soft for much of last year but posted some larger games at the end of the year in part reflecting an apparent end to sharp declines in spending and drilling and structures. Moreover the Business Sentiment has improved in the last few months and in addition the dollar over the past two years have restrained manufacturing output. Its continued to trend up aguayo and the ongoing labor market gains should provide some support to the Housing Construction goin going going fe recent increases in Mortgage Rates may have some restraint. Inflammation moved up over the past year mainly because the diminishing effect of the earlier declines and total Consumer Prices as measured. Its up one percentage point from its pace in 2015. The inflation that excludes the ball the whole energy food prices moved up. My colleagues and i continue to expand at a moderate pace with the job market is strengthening somewhat or other and inflation rising to 2 this reflects the views that the u. S. Monetary policy remains accommodated at the pace of the Global Economic activity should pick up over time supported by the accommodated policies abroad. Of course the inflation outlook depends importantly on the assessments but one. Its during the latter part of 2015 in the first half of 2016. Meanwhile most surveyed measures of the longterm Inflation Expectations have changed little on balance in recent months. As always, considerable uncertainty attends the Economic Outlook among the sources of uncertainty are possible changes in the fiscal and other policies and the future path of productivity growth. Turning to Monetary Policy for the fomc is committed to promoting maximum employment and price stability as mandated by congress against the backdrop playinofweighing on the economye past year including Financial Market stresses that emanated from the developments abroad the committee maintains an unchanged target rate for the federal funds rate for most of the year in order to support improvement in the labor market and increase inflation towards 2 . At its december meeting of the committee raised the target rate for the federal funds where he by one quarter percentage point from one half to three quarter quarters . In doing so they recognized the progress they made in the objectives. The committee judged that even after this increase in the federal target the Monetary Policy remains accommodated and thereby supporting the labor Market Conditions and a return to the 2 inflation. At its meeting that concluded early this month, the Committee Left the target range for the federal funds rate unchanged but reiterated that it expects the economy to warrant further gradual increases in the federal fund rate to achieve and maintain its inflation objectives. As i noted on previous occasions, waiting too long to remove accommodations would be unwise potentially requiring the fomc to eventually raise the rates rapidly which could risk disrupting the Financial Markets and push the economy into recession. Incoming data suggests labor Market Conditions continue to strengthen and inflation is moving up to 2 consistent in the expectations. At the upcoming meetings the committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations in which case a further adjustment would likely be appropriate. The committees view of the gradual increases in the federal funds rate would likely be appropriate to reflect the expectation that the federal funds rate tha is the interest e that is neither expansionary or contractionary and keeps the economy operating on an even keel would rise some overtime. Current estimates are well below pre crisis levels a phenomenon that may reflect the low productivity growth become a subdued Economic Growth abroad, Strong Demand for the longterm assets and other factors. The committee anticipates the depressing effect of these factors will diminish somewhat over time raising the nature of funding rate albeit to the levels that are still low by historical standards. That said the Economic Outlook is uncertain and Monetary Policy is not on the course. Participants will adjust their assessments over the appropriate path to the federal funds rate to the Economic Outlook and associated risks. Also, changes in the fiscal policy or other economic policies could potentially affect the Economic Outlook. Of course it is too early to know what policy changes will be put into place or how the economic effects will unfold. Whilwhywhile it is not my atteno opine on the spending proposals, i would point to the importance of improving the pace of the longer run Economic Growth and raising the standards with policies aimed at improving productivity and i would hope that the changes would be consistent with putting u. S. Fiscal accounts on a sustainable trajectory. In any event it is important to remember that fiscal policy is