U.S. Senator Steve Daines delivered the following remarks at a Senate Banking Committee hearing today with Federal Reserve Chairman Jerome Powell. Daines pointed out that Montana families are still struggling under the burden of inflation due to the Biden administration’s out-of-control spending. He also noted that he is encouraged that there will be changes to the Basel III Endgame proposal, which in its current form would hurt working families and small businesses. Daines recently joined a letter with his Republican colleagues to Chairman Powell expressing concern over this proposal. Finally, Daines lauded Chairman Powell’s comments yesterday that the Federal Reserve should not take climate change into account when seeking to fulfill its mission.
Below is a transcript of Daines’ remarks:
“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”
Chairman Powell: “So how the longer-term debt proposal aligns with that? So first of all that’s been up for comment on that one. The comments are in, we’re reviewing it. So I don’t want to say too much. But the theory of it in the first place was that those banks are not subject to the living will process to the extent that the GSIBS are. And this was sort of meant to be a middle step to make them more resolvable without imposing all of the burdens that we impose on the eight GSIBS to have very elaborate resolution plans. So that was the thinking I think on the calibration of it and all that. We have voluminous comments. We’re looking at them and you know, we’ll make an assessment and move forward as appropriate.
“Thank you and I know our smaller regional kind of banks will be happy to hear that thoughtful deliberation.”
press release provided by Senator Steve Daines