On the recordJune 15, 2017
I rise today to speak about a train wreck that is coming to our country right before our very eyes. Yesterday, the Federal Reserve, for the fourth time in the last year and a half, increased the Federal discount rate by one-quarter point-- one-quarter point. That is a rounding error in most people's imaginations; yet, I think it is a very impactful number. That is the fourth increase in the last year and a half that amounts to 100 basis points or a 1 full percentage point increase in the discount rate. With a $20 trillion debt, that equates to about $200 billion of new interest that we will be required to pay out of the revenue we get off the backs of working men and women in America. I have frequently come to this floor to speak about the $20 trillion debt, but, as we see what is happening now, we see the reality of what has been predicted over the last few years; that is, as we start talking about growth in the economy, we see a demand for capital and interest rates rising. We also see the Federal Reserve talking about adjusting their balance sheet--some $4.5 trillion on their balance sheet, the largest balance sheet they have had in history--they are now talking about unwinding that. So these are dramatic impacts on what we are talking about right now; that is, how we fund what we are going to be doing not only in healthcare but also our military, as well as the domestic programs we are here to talk about.…
