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Huizenga op-ed on CNBC: Democrats plot hostile takeover of the Fed via Dodd-Frank
Last week, Congressman Huizenga published an op-ed on CNBC detailing how Democrats are utilizing an obscure section of Dodd-Frank to enact a hostile takeover of the Federal Reserve and negatively impact how our nation conducts monetary policy. Congressman Huizenga is the Chairman of the House Financial Services Subcommittee on Monetary Policy and Trade which is the committee of jurisdiction and conducts oversight of the Federal Reserve. Congressman Huizenga held a Monetary Policy and Trade hearing on September 7th that examined this troubling push and other important factors regarding the economy as a whole, the Federal Reserve, and our nation's monetary policy. Below are excerpts from Congressman Huizenga's op-ed, which is available in it's entirety on CNBC.com.
Democrats plot hostile takeover of the Fed via Dodd-Frank
Congressman Bill Huizenga
September 7th, 2016
How, one might ask, can the Fed be taken over? The answer comes from Congressional Democrats, who are simply following the corporate raider's playbook.
After establishing an ownership toehold, raiders pressure boards to favor their own interests over others. Through a Trojan-horse provision, the Dodd-Frank Act of 2010 lit the fuse toward this end, tilting the process by which Federal Reserve District presidents are appointed in favor of candidates who instinctively lean toward accommodative monetary policies.
Striking this obscure section from Dodd-Frank could put monetary policy and our economy on a better track. But rather than embrace the promise of increased opportunity that such a repeal offers, Democrats are doubling down to completely silence interests in price stability and institutionalize a far more centrally controlled monetary policy.
Americans typically rebound in short order from recessions, even those associated with financial crises. Unfortunately, this time is different. Already, Dodd-Frank has negatively impacted and restricted what Americans can and cannot do. If those who favor giving even more power to the central planners to achieve their goal, history will show that Dodd-Frank served as the lynchpin for creating an even less informed and more distortionary monetary policy.
Sound monetary policy facilitates commerce wherever it shows promise. But when monetary policy is manipulated to favor certain interests, it leaves savers and investors guessing about where they can create real value. If Democrats were truly interested in maintaining an independent Federal Reserve, they would abandon their veiled attempt to take over the Fed. Failing to do so will fundamentally compromise not only our nation's monetary policy, but also the ability to break out of the weakest economic recovery of our lifetimes.
Congressman Huizenga's entire op-ed is available at CNBC.com.