Federal Reserve Chairman Janet Yellen on Tuesday wrote a letter to newly-appointed Speaker of the House Paul Ryan and House Democratic leader Nancy Pelosi urging Congress to reject a proposed bill that would increase transparency for the Fed. H.R. 3189, known as the Fed Oversight Reform and Modernization Act, is scheduled for a full House vote this week after passing in the House Financial Services Committee by a 33-25 vote on July 29.
Yellen made it clear in the letter that she was vehemently opposed to the FORM Act, saying that, quote, The bill would severely impair the Federal Reserve’s ability to carry out its congressional mandate and would be a grave mistake, detrimental to the economy and the American people. Close quote. House Financial Services Committee Chairman Jeb Hensarling said in response, quote, While the Fed’s unusual monetary activities and power have increased, there has regrettably been no corresponding increase in its transparency and accountability. The FORM Act will correct that. Close quote
Many Americans are still struggling with mortgage debt, which is the third most-popular form of debt in the nation. Much of this debt stems from borrowing at the wrong time and for the wrong purpose, preventing consumers from achieving financial stability. An Urban Institute report titled Americans’ Debt Styles by Age and over Time released recently found that 54 percent of those ages 18-22 are debt free, while 39 percent of those ages 23-27 are debt free. However, as borrowers age, that number drops drastically to 18 percent for the 63-67 age group, but rises for those over 77 at 36 percent.