Allan Meltzer, The Allan H. Meltzer University Professor of Political Economy at Carnegie Mellon University’s Tepper School of Business appeared as an expert witness today at a hearing of the United States House Financial Services Subcommittee on Monetary Policy and Trade, a subcommittee of the House Committee on Financial Services.
The hearing titled “Near-Zero Rate, Near-Zero Effect? Is ‘Unconventional’ Monetary Policy Really Working?” also featured testimony from: Mr. David Malpass, President of Encima; John B. Taylor,SIEPR Senior Fellow and Mary and Robert Raymond Professor of Economics at Stanford University; and Joseph E. Gagnon, Senior Fellow, Peterson Institute for International Economics. The session focused on the Federal Reserve’s conduct of monetary policy before, during and since the financial crisis.
Meltzer told the subcommittee “The Federal Reserve acts as your agent. The Federal Reserve has expanded bank reserves by more than 350% in the last few years. This is an enormous and unprecedented increase. And it continues. In my opinion, no entity or agent in our government should have so much unrestrained authority.”
A full copy of professor Meltzer’s testimony is available online.