WASHINGTON—U.S. Sen. Jeff Sessions (R-AL), Ranking Member of the Senate Budget Committee, issued the following statement today regarding the selection of Janet Yellen to chair the Federal Reserve and on the need for an era of "humility":
“I intend to fairly but rigorously scrutinize this nominee. What we need in the Fed is a policy of humility that recognizes its limitations and the risk of continued easing. The idea that the Fed has the insight to micromanage the economy, taming bubbles with targeted precision, was demolished after they not only failed to see but contributed to the last financial bubble. And while Fed policy has aided large and sophisticated investors who capitalize on low borrowing rates, it has squeezed the middle class and working Americans who prudently save their money.
The stimulus mindset in Washington—both fiscal and monetary—has not produced strong, sustainable growth. Cash pay for wage earners has declined while Wall Street has been enriched and the size of government has soared. Our nation’s long-term plan surely cannot be to supplement declining wages through ever more government subsidy and borrowing. The nation must begin a steady and firm move toward a sound money policy that creates confidence and stability in our struggling economy.”