Congressman Scott Garrett

Representing the 5th District of New Jersey

Garrett: Fed Proves Again That They’re Out of Touch

Feb 11, 2016
Press Release

WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Capital Markets and Government-Sponsored Enterprises Subcommittee reacted to Federal Reserve Chair Janet Yellen’s comments about systemically important financial institutions (SIFI) at today’s Senate Banking Committee hearing.

Chair Yellen claimed the Financial Stability Oversight Council’s (FSOC) SIFI designation, “is not intended to be permanent." She went on to offer no guidance on how firms can have the SIFI designation removed and suggested that firms knew exactly why they were designated despite the fact that FSOC has consistently hid their deliberations from the public.

“It’s no surprise that Fed Chair Yellen can’t provide guidance on how SIFIs shake their designation, since Congress and the public don’t have any idea why FSOC designated these firms in the first place. Cryptically telling American firms they know why they were designated may meet the Fed’s low standards of transparency, but suggesting that they try to read FSOC’s mind in order to remove their designation shows just how out of touch with reality the Federal Reserve is.”

Garrett has been a critic of the lack of basic transparency at the Federal Reserve and FSOC. He is the author of H.R. 3557, the Financial Stability Oversight Council (FSOC) Transparency and Accountability Act.