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Congressman French Hill, chairman of the House Financial Committee on Financial Services, joined us now for more. Congressman Hill, welcome to the program. So we've got a lot to get through, and I just wanted to start with the independence of the Federal serve and the role that your committee's got to play is this spat continues to build down in Washington.
Bligan Morthon, Jonathan, great to be with you. As you know, I've spoken out many times about the importance of the independence of the FED, and so has my colleague across the capital, Tim Scott, the chairman of the Senate Banking Committee. But because we fully support FED independence doesn't mean the Fed's immune from criticism. And every president in my adult life has been very vocal about criticizing the FED at one time for another. So I don't think FED independence is in question.
When it comes to what could actually happen in terms of financial stability. We have FED Governor Lisa Cook's lawyer saying that the President was unlawful and removing Governor Cook and said it's vague allegations would endanger the stability of our financial system and undermine the rule of law. Do you agree with that assessment?
Well, I think there's some hyperbole in there. Lisa Cook has been accused of effectively mortgage fraud. Those are significant allocations for someone, allegations, for someone who is a financial regulator, But I think they need to be adjudicated. I mean, she needs her due process, her day in court to prove that in fact that's not the case, and I think that's underway right now. And that's again something I've said in recent days.
Do you think the President should have waited for the courts to play out in terms of this investigation, for these allegations to actually become charges and a conviction, to then take up this idea to fire her for cause.
Look, the president's entitled to his own opinion. He has access to the facts that probably I don't, so he's made his decision about it. But by judgment is that's a serious allegation, and if true, it is certainly potentially a disqualifying allegation and charge for someone who's involved, very much intimately involved in the federal regulatory process.
Taking a step back, though, do you agree with the Treasury Secretary on resetting the Fed's mission.
Well, you know, I believe that for a long time. I believe the FED should have a single mandate, which is price stability. The biggest, most punishing tax on the American people, our citizens, is inflation, and inflation's caused by too much money chasing too few goods. And we've had a dramatic example of that FED policy during the pandemic and the Biden administration's fiscal policy in combination very punishing
forty year highs in inflation. So I believe we need fewer mandates, and I think we need that monetary policy focused on price stability. And again that's why set up a task force in this Congress to review the Fed's monetary policy since two thousand and eight, review the Fed's role and of financial regulation and supervision, and to make sure that we're also taking steps to make sure our
treasury security market is resilient. All this work is led by Frank Lucas of Oklahoma, and we're deep in that process. So I think taking a strong look at the Fed's monetary policy and their government it's an important factor. And I agree with the Treasury Secretary on that.
Well, inflation has not been below two percent for more than four years at this point, and we're still talking about fifty basis point rate cuts, maybe seventy five basis points of rate cuts this year. Do you think that that's premature, if this should be a single mandate federal reserve that looks solely on inflation.
Well, I think this is the tough decision they have coming up. And we've seen a softness in the economy during the whole year in terms of consumer's ability to
purchase the jobs reports that we've gotten. This is why the FED Chairman, I think consistently has said, let's look at the data, look at our data assessment and the forecast associated with it, and also make our own judgment about whether we're at the neutral rate for pricing, because we don't want to see the economy stall out and then go into stagflation, particularly when you're right about inflation getting close to two but not below two and not
right at two. But when you look at inflation expectations, they seem to be more closely anchored it to and that should give the Fed some confidence as they entertain their decision in the next few days.
Cheer Hill. I know you and your colleagues almost just recently got back from summer recess. But October first is fast approaching, and the Trump administration is weighing and pushing for this idea for a stopgap funding measure to keep the government open through January thirty first. Would you be on board with that?
But we're talking about it among ourselves and obviously with our friends in the Senate. We've each passed three appropriations bills in the Senate. In the House, I think it would be great to go to conference on those bills and then pursue get those enacted into law, and then pursue a CR that's a shorter term. CR would be my advice for consideration so that we can get this work done. We're very close. Both the House and Senate
are processing these bills. We have the Republicans in charge of the House and the Senate in the White House. So we ought to get together, find our top line number, and get our work done this year.
Congressman, before you got the important stuff, Arkansas football Razorbacks got to get done this year.
I really enjoyed watching the quarterback come and have his great game against Arkansas State. This was the first time in Arkansas history that Arkansas State played the University of Arkansas in Little Rock at the famous nineteen forty nine War Memorial Stadium. It was a fantastic day. He looks pretty good. We play Ole Miss this weekend, so that'll be the first SEC game and that's where the rubber hits.
The road Saturday seventh. Looking forward to it, sir, Thanks for being here, Congressman, friendship.
You still need to come to Razorbacks.
I've got to make it happen. I know this year it's got to happen. Thank you, sir. SEC football all the best. Thank you appreciate it.