Press Releases

Today, Congressman Bill Huizenga (R-MI), Ranking Member of the Investor Protection, Entrepreneurship, and Capital Markets Subcommittee released the following statement after the Federal Reserve signaled its plan to raise interest rates in March.

“For far too long, the Federal Reserve has chosen artificially low interest rates, as opposed to free-market principles,” said Congressman Bill Huizenga. “Today’s foreshadowing by the Federal Reserve is an overdue, but necessary first step in returning to a market-based approach to monetary policy.”

Background

U.S. interest rates are determined by the Federal Open Market Committee (FOMC). The FOMC, which meets eight times a year, is next scheduled to meet from March 15-16. If approved, the interest rate hike by the Federal Reserve would be its first since 2018.

Previously, Congressman Huizenga authored legislation (The FORM Act) to restore accountability and increase transparency at the Federal Reserve while also strengthening monetary policy. The FORM Act allows the Federal Reserve the ability to develop the best course of action on monetary policy, but requires it to give the American people a greater accounting of its actions. Additionally, the FORM Act requires the Federal Reserve to transparently communicate its monetary policy decisions to the American taxpayers. By requiring the Fed to regularly communicate how its policy choices compare to a benchmark rule instead of continuing the ad-hoc strategy currently being employed, the FORM Act will help consumers and investors make better decisions in the present and create more sound expectations about the future.