Senate Banking Chairman Says Yellen’s Fed Too Slow to Raise Rates

Yellen Says Fed Rate Hike Path Not Set in Stone

Senate Banking Chairman Mike Crapo wants changes in U.S. monetary policy, saying in an interview that the Federal Reserve under Chair Janet Yellen had been too slow to raise rates.

The Idaho Republican said in an interview Wednesday he’s not weighing in on whether Yellen should be reappointed or which names on President Donald Trump’s shortlist to replace her he would prefer.

“I have disagreed very strongly with the policies, like quantitative easing and the liberal policies that we’ve seen,” Crapo said. “I would like to see the Fed change direction,” he said.

“Get back to more normal, traditional monetary policy,” he said. His committee is charged with vetting Federal Reserve nominees, including Trump’s expected pick for the next chair.

Asked if the Fed had been too slow to raise rates, Crapo said “Yes, but I’m not going to say how fast it should have been.”

He said he’s also concerned about the size of the Federal Reserve balance sheet, and said he asked Yellen about a year ago whether they can “feather out of the huge holdings that they have right now and she said they thought they could. We’re watching to see.”

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