In this report, we analyze today’s FinServ Subcommittee on Monetary Policy and Trade hearing at which Republicans continued their assault on unconventional monetary policy and Democrats stood by their defense of FRB independence and actions during the crisis (although Rep. Sherman, D-CA, castigated yesterday’s rate rise).  The hearing was particularly political given how early it is in the congressional session, with Rep. Pittenger (R-NC) arguing that there may have been “collusion” between the FRB and the Obama Administration due to low rates.  Republicans also argued against both the size and the composition of the FRB’s balance sheet, contending that it needs to be wound down in the near term and should be restricted to Treasuries.

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