Chair Clyburn’s Opening Statement at Hearing with Fed Chair Powell
June 22, 2021
Washington, D.C. (June 22, 2021) — Today, Rep. James E. Clyburn, Chairman of the Select Subcommittee on the Coronavirus Crisis, delivered the following opening statement at today's hybrid hearing with Federal Reserve (Fed) Chair Jerome H. Powell:
Remarks (as prepared for delivery):
Good afternoon. The Committee will come to order. Without objection, the Chair is authorized to declare a recess of the Committee at any time.
I now recognize myself for an opening statement. I am pleased to welcome Federal Reserve Chair Jerome Powell. Thank you for coming today, Chair Powell.
Today's hearing will examine the Fed's response to the economic crisis caused by the coronavirus pandemic, the current state of the recovery, and what steps we must take to ensure a strong, sustainable, and equitable economic future.
The pandemic resulted in the loss of over 22 million jobs. In March 2020, Congress passed the
CARES Act, which allocated up to $500 billion for emergency lending by the Fed, including for
loans to small and medium-sized businesses, as well as states and municipalities. The lending
programs established by the Fed for these recipients helped prevent some economic damages, but
were limited in their effectiveness.
The Fed's Municipal Liquidity Facility sought to provide much-needed emergency lending to state and local governments. But the program's restrictions limited its impact at a time when many states and localities were in dire need. During the crisis, state and local governments shed 1.5 million jobs, and there is little evidence that the Municipal Liquidity Facility saved jobs or led to their return.
The Fed's Main Street Lending Program, similarly, imposed restrictions that made its loans
unattractive to struggling businesses and partner banks. Today's hearing will help us learn from
the shortcomings of these programs and the Fed's efforts to improve its future crisis response
capabilities.
The Fed has, admirably, highlighted the toll of economic crisis on the American people, and its
unequal impact on Black, Brown and low-income workers. The Fed's report last month on the
Economic Well-Being of U.S. Households in 2020 shows that Black and Brown Americans
suffered disproportionate economic pain last year. I look forward to hearing from Chair Powell
today on how we can continue to make the recovery more equitable.
Congress and the Biden-Harris Administration have accelerated the recovery. As Chair Powell
predicted in late March, the dramatic ramp up in the vaccination campaign—which occurred as a
result of the Biden Administration's leadership, with support from Congress in the American
Rescue Plan—has enabled, and I quote, "us to reopen the economy sooner than might have
been expected."
The American Rescue Plan also delivered desperately needed financial assistance, which has been and will continue to be a lifeline for American families. The American Rescue Plan provided direct relief checks, extended unemployment, and increased healthcare access. And we have seen the results of that extraordinary action.
Over the last four months, the economy has added over 1.6 million jobs, and new unemployment
insurance claims have dropped significantly. As Chair Powell predicted in March, Congress's
aggressive action to provide fiscal relief through the American Rescue Plan is, quote,
"accelerating the return to full employment."
But there is more work to do. There are still 7.6 million fewer jobs than before the pandemic, with Black and brown Americans still unemployed at disproportionately high rates. As Chair Powell said earlier this year; to raise Americans' standard of living over the long-term, Congress must make investments to increase the productivity of the economy.
I agree. And Congress is working to do just that. The American Jobs Plan and the American
Families Plan will make the investments we need to ensure a strong, sustainable, and equitable
economic recovery.
The American Jobs Plan will sustainably modernize our transportation infrastructure, bring
affordable broadband access to millions of Americans, build schools and housing, upgrade water
and power systems, and create well-paying jobs for essential home care workers.
The American Families Plan will invest in preschool and higher education, allow parents to return to the workforce by providing child-care assistance, and support families by extending the American Rescue Plan's expanded Child Tax Credit.
Congress is working hard crafting legislation to enact the American Jobs Plan and the American
Families Plan so that we build back better in our recovery from the pandemic.
I look forward to hearing from Chair Powell about what else we can do to ensure that our country's economic policy is effective, efficient, and equitable.
Thank you. I now yield to the Ranking Member for his opening statement.
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