On the recordMay 23, 2024
Republicans are focused on the bill's prohibition on CBDCs, but according to the nonpartisan CBO: ``The bill's prohibition on the Federal Reserve's use or issuance of a central bank digital currency could apply to bank reserves, which are a unit of value and a liability of the Federal Reserve.'' As the CBO also acknowledges, bank reserves are a primary tool for the Fed in conducting monetary policy. Prohibiting the Fed from holding bank reserves could very well take us backward, erasing all progress that the Fed has made so far in reducing inflation and achieving a soft landing. A vote for this bill is a vote for higher inflation and economic uncertainty. Mr. Chairman, I reserve the balance of my time.
