After visiting with countless families and individuals across Missouri’s 3rd Congressional District, I have found that hard-working individuals, those living on a fixed income, and small businesses understand their pocketbooks are lighter and their economic future is not as bright. This is an issue that starts and ends with the policies and rhetoric of this administration, enabled by the Federal Reserve.

Entrepreneurs and inventors grow economies but only when government stays out of the way and central banks practice restrained, responsible monetary policy. Unfortunately, the administration’s failed economic policies, including high taxes, crushing regulations and reckless spending, have harmed the economy in ways that the Fed has been unable to counter despite its best attempts. The path to lasting growth is not through the Fed, but rather through tax and regulatory reform.

The economy appears less and less responsive to additional monetary stimulus that for the last five years has been championed by the Federal Reserve. The result: an economic recovery that is the slowest in modern times. By pushing interest rates down, the Federal Reserve’s exceptionally accommodative monetary policy hurts those Americans who want to save their money.

For several years now, the Federal Reserve has blurred the lines between fiscal and monetary policy and the Fed's pumping plan has resulted in roughly $4 trillion in purchases of Treasury bonds and mortgage backed securities and created a stock market that is, according to many economists, a bubble ready to burst. This one example highlights the need for the Fed to adopt a rules‐based monetary policy rather than the politically expedient method currently being employed. 

As a former bank examiner and community banker, I recognize these macro decisions being made by the Federal Reserve and its allies in Washington are being acutely felt by retirees, those living on a fixed income, and farmers, ranchers and small businesses across the country.

As a member of the House Financial Services Committee, I can tell you that House Republicans are keenly aware of the need for real reform at the Federal Reserve. That is why there is growing support for the Federal Reserve Accountability and Transparency Act of 2014 which would require the Fed to be more accountable to Congress and you. More specifically, this reform package requires the Fed to conduct cost-benefit analyses on its rules, publicly disclose its positions in international negotiations, and release information on the salaries of Federal Reserve staff which, unlike pay at other federal agencies and in Congress, have never been made public.

After the July 16 hearing in the House Financial Services Committee, it is clear that Chair Yellen talks a big game and is interested in at least entertaining rules-based policy reform, but only time will tell if she can or will make good on her rhetoric to improve not only communication between the Federal Reserve and policymakers but also address the many issues impacting the millions of Americans living on fixed incomes. If she follows through, then there is a chance this administration will embrace bills like the Federal Accountability and Transparency Act and allow it to become law.

We cannot afford to wait and neither can Americans at the mercy of the Federal Reserve.