Sen. Bernie Moreno Critiques Federal Reserve Chairman
Senator Bernie Moreno (R-OH) expressed his frustration with Senate Chairman Jerome Powell, who has criticized President Trump’s trade policies. Moreno accused the government of neglecting the issue of inflation, which he attributes to Democratic leadership, along with a staggering $400 billion annual expenditure.
In a post on X, Moreno shared an audio clip that captured the moment. He highlighted how Powell failed to address inflation spurred by lockdowns, vaccine mandates, and tax increases but was eager to target Trump’s trade agenda. Moreno suggested that such an approach could cost the U.S. billions.
During a testimony before the Senate Bank, Housing, and Urban Affairs Committee, Moreno questioned whether the Federal Reserve is genuinely concerned about the financial well-being of Americans. He brought up how various supply disruptions, like vaccine orders and energy restrictions, influence inflation.
Moreno confronted Powell directly, asking, “Did you weigh in on the lockdowns during COVID? Did you think closing down the entire economy was wise?”
Powell’s response was, “Of course not.”
Moreno pushed further by mentioning the Biden administration’s vaccination policies and their repercussions for businesses. He noted the challenges faced by companies when employees had to be spaced apart, resulting in layoffs or resignations. “Wouldn’t that be a supply chain shock?” he asked.
Powell acknowledged the medical implications, but Moreno countered, “That’s a supply chain issue. I’m not asking for medical advice here; I want to hear your views on inflation from a Federal Reserve perspective.”
Powell then stated, “We comment on what we think is appropriate.” Moreno retorted that these issues undeniably impact inflation. However, Powell reiterated his belief that the supply chain’s effect on inflation was minimal.
Moreno pressed, “Are you saying supply chain shocks don’t play a role in inflation?” Powell conceded, “They do.” Moreno replied, “Exactly, it’s obvious.”
Continuing with another example, Moreno pointed out that banning liquid natural gas exports could lead to rising commodity prices, raising the question of whether this shock would also drive inflation. Powell responded, “That’s potentially possible.”
Moreno then shifted the focus to corporate taxes, questioning who ultimately bears the cost. “Is it just some faceless organization behind a curtain that pays taxes?” he asked.
Powell clarified, “Ultimately, it’s the shareholders and customers.”
Moreno pressed on, asking Powell to affirm that while the impact of tax expenses may be unpredictable, consumers would likely feel the burden significantly. Powell agreed, acknowledging that taxes could indeed raise inflation. Yet, Moreno pointed out that Powell wouldn’t comment on it further.
Moreno also referenced a letter where Powell had stated the Federal Reserve wouldn’t discuss trade policy: “So you choose not to comment on factors like supply shocks and tax policies that evidently affect inflation?”
Moreno continued, criticizing the logic behind student loans for certain fields of study, contrasting them with other financial options. “Why allow students to borrow for degrees in, say, gender studies at Harvard while rejecting the concept of car loans for them?” he asked.
Powell responded by stating that he hadn’t commented on tariffs and would rather focus on inflation.
Moreno challenged this, insisting Powell had commented on tariffs amidst the discussion. “You’ve mentioned tariffs; it seems to be a prominent point of discussion for you,” he said.
In closing, Moreno stated, “Right now, car prices are decreasing. Inflation in the U.S. seems to be easing. We’ve been elected by millions of voters while you seem to sidestep the issues. If tariffs are bothering you, perhaps it’s time to view them through a different lens.”
