WASHINGTON, DC – Today, U.S. Senator Jack Reed (D-RI), a senior member of the Senate Committee on Banking, Housing, and Urban Affairs, took to the floor of the U.S. Senate to call on Republicans to end their blockade of crucial, well-qualified nominees for the Federal Reserve Board.

Text of the speech follows.  Video of Senator Reed’s remarks is available here.

SEN. REED: Madam President, I rise in support of the swift consideration of President Biden’s five nominees to the Board of Governors of the Federal Reserve System.

Over the last year, our economy has improved tremendously thanks to President Biden’s American Rescue Plan and the Bipartisan Infrastructure Law. And we’ve been guided along the way by steady leadership at the Fed. We’re seeing positive results. Last year, GDP grew by 5.7% and we gained over 6.6 million jobs. In each month during the second half of last year, the family tax credit in the American Rescue Plan pulled approximately 3.5 million children out of poverty. Unemployment claims are at a 50-year low; the unemployment rate is at four percent; nominal wages are rising at their fastest pace in decades; and we have begun investing $1.2 trillion from the Bipartisan Infrastructure Law that will help businesses and the economy in the decades ahead, and provide an extraordinary number of jobs.

But we are not yet out of the woods from the pandemic and there are critical economic challenges we need to address, including inflation, the lack of affordable housing, the high cost of prescription drugs, the need for affordable child care, and others. The Fed plays a pivotal role in making sure our economy grows on an even keel so that we can meet these challenges and remain the world’s leader. And, I might add, this is a very difficult time for the world’s economy as we respond to the illegal attack by Putin on Ukraine. The world, under the leadership of President Biden, has imposed unprecedented sanctions. It’s in this volatile moment that the Fed will also play a critical role.

Unfortunately, Republican partisan brinkmanship is now preventing us from having a fully staffed and functioning Fed, just as Republicans have stymied nominations of qualified individuals to serve at key posts at the Defense Department, the State Department, and several other agencies. I would note that at times, we are being forced to break filibusters on nominations that eventually pass with 70, 80, or 90 “yes” votes. Perhaps my colleagues think that these tactics are somehow politically beneficial, but the fact is these tactics diminish and degrade the ability of the Federal government to serve the American people.

And so, we come to the Federal Reserve.

The seven-member Board is technically operating with four of its seven members today. And two of those four are in confirmation limbo: Jerome Powell, who has been nominated for a second term as chair, is serving on an acting basis. Lael Brainard is a Governor, but is also the pending nominee for Vice Chair. There is no Vice Chair for Supervision. And two ordinary Governor seats are vacant.

The President has nominated a slate of five qualified, bipartisan candidates to fill these positions, including Mr. Powell. Mr. Powell was first appointed Fed Chair by Donald Trump and has served admirably for the last four years. Lael Brainard was confirmed to her current position on the Fed Board with strong bipartisan support. Sarah Bloom Raskin is a former Governor and has been nominated as Vice Chair for Supervision. The Senate confirmed Ms. Raskin to the Federal Reserve Board a decade ago by voice vote and as Deputy Treasury Secretary on a bipartisan vote. And Lisa Cook and Phil Jefferson are mainstream academic economists who have been nominated as Governors.

Earlier this year, the Banking Committee held hearings on these nominees. They demonstrated their qualifications and responded to hundreds of questions. They have met with Senators on the Committee individually as well.

But on February 15, my Republican colleagues blocked the Banking Committee from voting on these nominations. They didn’t show up and vote “no” on the nominees whom they opposed…they just didn’t show up. They decided to skip the meeting precisely to keep the Committee from moving these nominees to the full Senate.

They have taken this step during a pandemic, a bout of inflation, and a growing violent conflict in Europe. At a time when the Federal Reserve’s job has never been more important, my Republican colleagues have chosen to stall the confirmations of qualified nominees to help lead our economy.

The Federal Reserve’s monetary policy decisions are made by the Federal Open Market Committee, also known as the FOMC. The FOMC has twelve voting members, including all seven Governors on the Board in Washington. The others are presidents of the regional Reserve Banks. Due to the Republican boycott, the FOMC is now operating with only nine members: four Governors and five Reserve Bank presidents.

The FOMC’s primary job is to establish interest rates and authorize open market operations to achieve those targeted interest rates. This function makes it the most important economic policymaking body in the world.

The FOMC now faces enormous challenges to bring prices under control without harming the strong economic recovery. Supply chain disruptions and the pandemic have pushed inflation up. Russia’s unprovoked invasion of Ukraine, which many economists expect to make supply shortages much worse and cause energy prices to rise, creates huge risks for the global economy. These economic challenges collectively demand a fully staffed FOMC.

Indeed, one of the FOMC’s biggest strengths is its ability to inspire confidence in the United States and in the world. It is able to do this because it typically works by consensus – consensus that reflects the view of its twelve expert members. But when the FMOC doesn’t have its full complement of members and when members are serving in an acting capacity, it doesn’t speak with the same authority. At a moment when there is so much turmoil in the domestic and global economies, it is reckless to deny the FOMC its full membership.

My Republican colleagues have spent plenty of time talking about inflation without offering solutions. Now, when presented with a chance to empower the FOMC to combat higher prices, my Republican colleagues have instead chosen to handcuff it.

By weakening the FOMC, Senate Republicans are increasing the odds of a mistake. That makes it more likely for higher prices to persist. This outcome is unacceptable when millions of Americans are struggling to cover increased costs for everyday expenses. The American people should not need to bear any further economic hardships—however slight—that could result from Republicans continuing to block these nominees.

Madam President, blocking these nominees also robs Congress and the public of an important mechanism to hold the FOMC accountable for its decisions.

My Republican colleagues say they are committed to accountability, but their blockade is ensuring that the five Reserve Bank presidents, who answer to the nation’s commercial banks and are not confirmed by the Senate, are a majority on the FOMC. That means these five non-Senate-confirmed officials predominate when it comes to interest rate decisions.

Congress promised the American people an FOMC led by members who exclusively serve their interests. I urge my Republican colleagues to deliver on that promise.

Madam President, if the Federal Reserve fails to deliver maximum employment and stable prices, the American people will question why. Reasonable minds can differ about whether the FOMC ultimately raises interest rates too much, too little, or just enough. Economists are sure to debate that question in the years to come. But one obvious conclusion will be that the FOMC lacked a full complement of members to support the difficult decisions that it will make this year. That conclusion will spread doubts about the integrity of the Federal Reserve and its policies. If those doubts take root, it will be harder for our nation’s central bank to support the economy.

In these uncertain economic times, the American people need more certainty, not less. And they need an FOMC that is accountable to them.

I urge my Republican colleagues to allow the Senate to vote on these highly qualified nominees.

Thank you, Madam President. With that, I will yield the floor.