WASHINGTON - Senator Chuck Grassley will hold 11 meetings in Iowa during the week of January 20 as part of his 99-county tour.

Grassley has held at least one meeting in each of Iowa's 99 counties every year since he was first elected to the U.S. Senate. He started this year's series on Jan. 3 in Floyd and Chickasaw counties.

On Jan. 20, 21, 22, and 24, Grassley will hold meetings in Clarksville, Ackley, Conrad, Waverly, Independence, Cedar Rapids, Cedar Falls, Ankeny, Boone, Nevada and State Center.

"Representative government is a two-way street.  It's strengthened by dialogue between elected officials and the people we represent," Grassley said.  "I appreciate the opportunity to go directly to Iowans in their workplaces and where they're gathered for civic group meetings for question and answer sessions.  I also enjoy meeting with high school students as they study current affairs and government."

Grassley will be available for 15 minutes after each meeting to answer questions from local reporters.  Members of the media should contact the individual organization about attending each event, as Grassley is a guest of the organization.

In addition to the county meetings, on Jan. 22 Grassley will give a speech on whistleblowing and government accountability at the University of Northern Iowa following a Q&A with an Iowa politics class.  On Jan. 23, Grassley will speak at "Hearing in the Heartland:  Supporting the Renewable Fuels Standard," hosted by Gov. Terry Branstad and Lt. Gov. Kim Reynolds.  More information about this event is available here.

 

Grassley's schedule for the week of January 20 is as follows:­

 

Monday, January 20

9-10 a.m.

Q&A with students at Clarksville High School

318 North Mather

Clarksville

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

11:30 a.m.-12:30 p.m.

Q&A with the Ackley Chamber of Commerce

Presbyterian Village

502 Butler Street

Ackley

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

1:45-2:45 p.m.

Tour and Q&A with employees at Ritchie Industries, Inc.

120 South Main Street

Conrad

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

Tuesday, January 21

9:45-10:45 a.m.

Tour and Q&A with employees at Terex Cranes
106 12th St SE

Waverly
*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

Noon-1 p.m.

Q&A with the Rotary Club of Independence

Bill's Pizza

201 1st Street West

Independence

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

2:30-3:30 p.m.

Tour and Q&A with employees at TrueNorth Transportation Division

500 1st Street Southeast

Cedar Rapids

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

Wednesday, January 22

2-3 p.m.

Q&A with Iowa politics class

University of Northern Iowa

Cedar Falls

 

3:15-4:15 p.m.

Speech and Q&A on Whistleblowing and Government Accountability

Maucker Union, University Room

University of Northern Iowa

Cedar Falls

*This event is free and open to the public.  Grassley will be available to 15 minutes after the meeting to answer questions from local media.

 

Thursday, January 23

3-4 p.m.

"Hearing in the Heartland:  Supporting the Renewable Fuels Standard"

Hall of Laureates

100 Locust Street

Des Moines

 

Friday, January 24

8:30-9:30 a.m.

Tour and Q&A with employees at Lorenz & Jones Marine Distributor

3402 SE Convenience Boulevard

Ankeny

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

11 a.m.-Noon

Tour and Q&A with employees at Rolfes @ Boone

1773 219th Lane

Boone

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

1-2 p.m.

Q&A with students at Nevada High School
1001 15th Street

Nevada

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

2:45-3:30 p.m.

Q&A with students at West Marshall High School
601 3rd Street NW

State Center

*Grassley will be available for 15 minutes after the meeting to answer questions from local reporters.

 

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Floor Speech by Senator Chuck Grassley on How the Senate Should Work

Delivered Monday, January 13, 2014

Senator McConnell has made a very important call to restore the Senate as the great deliberative body it was designed to be.

I would like to continue to add my voice to that call and expand on some observations I have made previously before the Senate.

The U.S. Senate is a unique body designed with a unique purpose in mind.

In Federalist Paper 62, attributed to the Father of the Constitution, James Madison, the unique role of the U.S. Senate is explained:

"The necessity of a senate is not less indicated by the propensity of all single and numerous assemblies to yield to the impulse of sudden and violent passions, and to be seduced by factious leaders into intemperate and pernicious resolutions."

When Madison talks about "factious leaders" and "intemperate and pernicious resolutions" he basically means what we call partisanship and the "my way or the highway" approach to legislating that is all too common these days.

What might come as a shock to anyone who has followed the United States Senate lately is the fact that the Senate was specifically designed to check partisan passions and ensure that Americans of all stripes are fairly represented though a deliberative process.

Clearly the Senate is not fulfilling the role the Framers of the Constitution intended.

To find out what went wrong, we first have to examine how the Senate was supposed to function.

About this propensity of legislatures to be dominated by factious leaders acting intemperately, Madison goes on to say:

"Examples on this subject might be cited without number; and from proceedings within the United States, as well as from the history of other nations."

Note that in advocating for the creation of a Senate to counter this negative tendency, Madison references examples from proceedings within the United States.

Many state legislatures in the early days of our Republic were unicameral with frequent elections and weak executives.

This led to many instances where a temporary majority faction would gain control and quickly pass legislation that advantaged the majority at the expense of the minority.

The U.S. Senate has been called the greatest deliberative body in the world because it was specifically designed to proceed at a measured pace and to guarantee the rights of the minority party.

As James Madison wrote in Federalist Paper Number 10:

"Complaints are everywhere heard from our most considerate and virtuous citizens, equally the friends of public and private faith and of public and personal liberty, that our governments are too unstable, that the public good is disregarded in the conflicts of rival parties, and that measures are too often decided, not according to the rules of justice and the rights of the minor party, but by the superior force of an interested and overbearing majority."

What's unique about the Senate is that the rules and traditions force senators to work together to prevent an "overbearing majority" from steamrolling the minority party.

Because the rules of the Senate are built around consensus, as opposed to the House of Representatives where the majority party dominates, it forces senators of all parties to listen to each other and work together.

At least that was true for most of my time in the Senate.

That has changed in recent years.

If anyone wonders why the tone in Washington has become so heated recently, the loss of the Senate as a deliberative body is certainly a big factor.

There's an apocryphal story, that may or may not be historically accurate, but which certainly depicts how the Senate was intended to function.

The story goes that when Jefferson returned from France where he was serving during the Constitutional Convention, he asked George Washington why the Senate had been created.

Washington replied by asking Jefferson "Why did you pour that tea into your saucer?"

"To cool it," said Jefferson.

"Even so," responded Washington, "we pour legislation into the senatorial saucer to cool it."

In the House of Representatives, the Rules Committee sets out the terms of debate for each bill.

If you want to offer an amendment in the House, you have to go hat in hand to the Rules Committee and ask permission.

If the House leadership doesn't like your amendment, you're out of luck.

By contrast, the Senate has a tradition of allowing extensive debate and amendments by any senator without prior approval by anybody.

However, that tradition has gone out the window under the current majority leadership.

We have seen an unprecedented abuse of cloture motions to cut off the deliberative process paired with a tactic called "filling the tree" to block amendments being considered.

The Senate Majority Leader has effectively become a one-man version of the House Rules Committee, dictating what amendments will be debated and which ones will never see the light of day.

He has done so again on the unemployment bill currently before the Senate.

In fact, he's been quite unashamed about saying that he is not going to allow any amendments.

This strips the ability of individual senators to effectively represent their state, regardless of party.

Blocking amendments also virtually guarantees that any legislation the Senate votes on will be more partisan in nature, violating the very purpose of the Senate according to James Madison.

By empowering the majority leader at the expense of individual senators, the people of the 50 states lose their voice in the Senate and party leaders get their way instead.

The people of Iowa sent me to the United States Senate to represent them, not to simply vote up or down on a purely partisan agenda dictated by the Majority Leader.

Everyone complains about the lack of bipartisanship these days, but there is no opportunity for individual senators to work together across the aisle when legislation is drafted on a partisan basis and amendments are blocked.

Bipartisanship requires giving individual senators a voice, regardless of party.

That's the only way to get things done in the Senate.

In the last decade, when I was Chairman of the Finance Committee, and Republicans controlled the Senate, we wanted to actually get things done.

In order for that to happen, we knew we had to accommodate the minority.

We had to have patience, humility, and respect for the minority, attributes that don't exist on the other side anymore.

And we had some major bipartisan accomplishments, from the largest tax cut in history to a Medicare prescription drug program to numerous trade agreements.

Those kind of major bills don't happen anymore.

The Senate rules provide that any senator may offer an amendment regardless of party affiliation.

Each senator represents hundreds of thousands to millions of Americans and each has an individual right to offer amendments for consideration.

The principle here isn't about political parties having their say, but duly elected senators participating in the legislative process.

Again, as part of our duty to represent the citizens of our respective states, each senator has an individual right to offer amendments.

This right cannot be outsourced to party leaders.

The longstanding tradition of the Senate is that members of the minority party, as well as rank and file members of the majority party, have an opportunity to offer amendments for a vote by the Senate.

The now routine practice of "filling the tree" to block amendments has been a major factor in the destruction on the Senate as a deliberative body.

This is usually combined with filing cloture to cut off further consideration of a bill, which has occurred to a truly unprecedented extent.

In a deliberative body, debate and amendments are essential so cloture should be rare and the abuse of cloture strikes to the very heart of the how the Senate is intended to operate.

It is important to note that the majority leader has tried to pass off the cloture motions he has filed, which are attempts by the majority party to silence the minority party, as Republican filibusters.

There seems to have been a concerted attempt to confuse cloture motions with filibusters but the Washington Post Fact Checker has caught the majority leader in this distortion, giving his claim of unprecedented Republican filibusters Two Pinocchios.

In fact, a report by the nonpartisan Congressional Research Service called "Cloture Attempts on Nominations: Data and Historical Development" by Richard S. Beth contains an entire section titled, "Cloture Motions Do Not Correspond with Filibusters."

The abuse of cloture, often combined with the blocking of amendments, prevents all Senators from doing what they were sent here to do, not just members of the minority party.

And, it's gotten even worse.

Even where the majority leader has decided he's going to be open to amendments, he has created, out of whole cloth, new restrictions to limit senators' rights.

First, he normally only opens up the amendment process if there's an agreement to limit amendments.

And, this is usually only a handful or so.

Then, he has magically determined that only "germane" or "relevant" amendments can be considered.

Of course, nowhere do the Senate rules require amendments to be germane, other than post cloture.

Senators elected in the last few years appear to be ignorant of this fact.

You'll hear some senators here argue against an amendment saying it's non-germane or non-relevant.

They've totally fallen for the majority leader's creative rulemaking, thus giving up one of their rights as a senator with which to represent their state.

I can't count how many non-germane or non-relevant amendments I had to allow votes on when I processed bills when Republicans were in charge.

They were usually tough, political votes, but we took them because we wanted to get things done.

You don't see that nowadays.

The current majority avoids tough votes at all costs.

And that's why they don't get much done.

The American people sent us here to represent them.

That means voting, not avoiding tough votes.

We sometimes hear that this is a question of majority rule versus minority obstruction.

Again, that ignores that each senator is elected to represent their state, not simply to be an agent of their party.

There are policies that have majority support in the Senate that have been denied a vote.

What happened during Senate debate on the budget resolution seems to prove that point.

The special rules for the Budget Resolution limit debate, so it can't be filibustered, but allow for unlimited amendments.

A Republican amendment to the Senate Budget Resolution in support of repealing the tax on life-saving medical devices in President Obama's health care law passed by an overwhelming 79 to 20, with more than half of Democrats voting with Republicans, rather than their party leader.

A Republican amendment in support of approval of the Keystone XL Pipeline to bring oil from Canada passed 62 to 37.

Votes like these that split the Democrats and hand a win to Republicans are exactly what the majority leader has been trying to avoid by blocking amendments.

That's why the Senate didn't take up a budget resolution for more than three years.

Until we put an end to the abuse of cloture and the blocking of amendments, the Senate cannot function as the Framers intended.

We must bring back the Senate as a deliberative body.

Our politics today desperately need the cooling saucer of the Senate.

The action by the majority leader to make it easier to consider nominations on a purely partisan basis went in the wrong direction.

In the face of bipartisan opposition and with no Republican votes, the so called "nuclear option" established a precedent effectively overruling the rules on the books.

A better move would be for the Senate to establish the precedent that filling the tree and abusing cloture to block a full amendment process is illegitimate.

It's time to restore the Senate so it can fulfill its Constitutional role.

Senator McConnell has made a thoughtful and well-reasoned appeal and I hope my colleagues will listen for the sake of this institution and the country as a whole.

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Friday, January 10, 2014

Grassley Leads Iowa Delegation Requesting Further Review from FEMA of Rural Electric Cooperatives Post-Disaster Reconstruction

WASHINGTON - The Iowa congressional delegation today asked the Federal Emergency Management Agency (FEMA) to revisit a decision to deny reconstruction assistance to several Northwest Iowa rural electric cooperatives following severe weather last spring.

The Iowa delegation is concerned that FEMA may have interpreted the law one way after already telling the cooperatives a different interpretation.  In the letter they wrote that FEMA may have "changed policy without adequate notification and public input in accordance with Section 325 of the Stafford Act, or changed policy interpretation in a way that contradicts previous interpretation, industry understanding, previous practice, and industry best practices."

"This is a serious concern for these cooperatives.  I heard about it at my town meetings and told them we'd try and get to the bottom of FEMA's abrupt change of policy," Grassley said.

In addition, the members wrote, "Concerns have been raised that FEMA may have violated both the terms and spirit of Section 325 of the Stafford Act in these cases.  Congress enacted Section 325 to prevent just this sort of situation from occurring where FEMA appears to have changed its policy to the detriment of the RECs without due notice and opportunity for them to comment on the changes.  Particularly the requirement that the RECs must have performed predisaster laboratory testing to be eligible for reimbursement imposes an impossible burden on the RECs when FEMA first articulates this dramatic change to existing policy after the disaster has occurred."

Here's a copy of the text of the letter.  The signed copy can be found here.

 

January 8, 2014

 

W. Craig Fugate

Administrator

Federal Emergency Management Agency

U+S Department of Homeland Security

500 C Street SW

Washington D.C. 20472

Dear Administrator Fugate:

On December 24, 2013, the Iowa Homeland Security and Emergency Management Department submitted an appeal in conjunction with Iowa Lakes Electric Cooperative, Lyon Rural Electric Cooperative, Osceola Electric Cooperative, and Sanborn Electric and Telecommunications Utility regarding FEMA's denial of post-disaster reconstruction of electrical facilities.  We ask that these appeals receive all due consideration and that you and your senior leadership team at FEMA headquarters actively engage, especially since similar issues and appeals are highly likely to arise in other states and FEMA regions.

FEMA-4114-DR-IA was declared a major disaster by the President in response to severe winter storms which occurred from April 9-13, 2013.  This severe weather caused millions of dollars of damage to electrical utility lines in northwest Iowa.   Project worksheets were written for emergency and permanent repairs for work under Category "B" and Category "F" respectively, including reconductoring projects for at least one utility (Rock Rapids Municipal).  However, the Project Worksheets that were prepared under the guidelines in FEMA's Disaster Assistance Program Fact Sheet 9580.6, Electric Utility Repair (Public and Private Nonprofit) to address replacement of the damaged conductors for the aforementioned applicants were denied the disaster assistance based on a series of concerns related to "comprehensive laboratory testing."

We have heard many concerns about FEMA's decision related to the rural electric cooperatives and FEMA's current interpretation of disaster assistance policy 9580.6, including:

•           Concerns that FEMA has changed policy without adequate notification and public input in accordance with Section 325 of the Stafford Act, or changed policy interpretation in a way that contradicts previous interpretation, industry understanding, previous practice, and industry best practices.

•           Concerns that proposed pre-disaster laboratory testing requirements would be detrimental to system integrity and could significantly impact the rates which citizens in rural areas pay for electricity.

•           Concerns that previous pre-disaster documentation standards have been ignored and that the Iowa rural electric cooperatives are being held to a higher standard that has not been previously communicated.

•           Concerns that Iowa's electric cooperatives and eligible non-profit utilities are being held to a different standard for pre- and post-disaster documentation than those of other FEMA Regions.

Concerns have been raised that FEMA may have violated both the terms and spirit of Section 325 of the Stafford Act in these cases.  Congress enacted Section 325 to prevent just this sort of situation from occurring where FEMA appears to have changed its policy to the detriment of the RECs without due notice and opportunity for them to comment on the changes.  Particularly the requirement that the RECs must have performed predisaster laboratory testing to be eligible for reimbursement imposes an impossible burden on the RECs when FEMA first articulates this dramatic change to existing policy after the disaster has occurred.

We expect you to carefully review and consider all of the information provided in the appeals.

Thank you for your time and attention to this important matter.

 

Sincerely,

 

______________________________ ______________________________

Senator Chuck Grassley                       Senator Tom Harkin

 

______________________________ ______________________________

Representative Bruce Braley                         Representative Dave Loebsack

 

______________________________ ______________________________

Representative Tom Latham                         Representative Steve King

 

cc:        Beth Freeman, Regional Director, FEMA Region VII

John Padalino, Administrator, Rural Utilities Service, USDA

Deborah Ingram, Assistant Administrator, Recovery, FEMA


Friday, January 10, 2014

Vet Med Mobility Act Clears Senate

WASHINGTON - The Senate earlier this week passed legislation cosponsored by Senator Chuck Grassley that would allow veterinarians to legally carry and dispense controlled substances away from their brick and mortar facilities.  The legislation now awaits action by the House of Representatives.

The Veterinary Medicine Mobility Act is in response to a Drug Enforcement Administration interpretation of the Controlled Substances Act, which requires veterinarians to treat animals with controlled substances at the location in which they are registered.  The Veterinary Medicine Mobility Act allows a veterinarian to transport a controlled substance "in the usual course of veterinary medicine practice at a site other than the registrants registered principle place of business or professional practice."

"This interpretation of the Controlled Substances Act is burdensome and nonsensical to both farmers and veterinarians. In many cases a sick animal such as a horse, cow or pig may not be able to easily move into a trailer to be treated at a vet's office.  In some cases, the veterinarian may be located several miles away.  Transporting an animal may hurt the animal further and put the farmer at risk," Grassley said.  "A 'house call' is likely just what the doctor ordered.  Forcing a farmer to load a sick animal into a trailer for a possibly long trip to the vet's office is simply not a practical solution."

The bill also requires veterinarians to only dispense controlled substances in a state where they are licensed to practice veterinary medicine, which will help to eliminate the transportation of controlled substances across state lines.  More than 100 veterinary medical associations, zoos, and aquariums including the Iowa Veterinary Medical Association and the Iowa State University College of Veterinary Medicine support the bill.

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Will examine strategies to counter the drug trade as U.S. troop drawdown continues

Washington–Senate Caucus on International Narcotics Control Chairman Dianne Feinstein (D-Calif.) and Co-Chairman Chuck Grassley (R-Iowa) today announced a hearing on the future of U.S. counternarcotics efforts in Afghanistan on Wednesday, January 15, at 3 p.m.

 

The illegal drug trade is a contributing factor to many of the major challenges facing Afghanistan. Drug trafficking funds the Taliban, increases corruption and poses a serious public health challenge. The hearing will examine how the United States can sustain and improve counternarcotics efforts in Afghanistan as its military presence declines in 2014.

WHO:

 

·         William Brownfield, Assistant Secretary of State for International Narcotics and Law Enforcement Affairs

·         James Capra, Chief of Operations for the Drug Enforcement Administration

·         Erin Logan, Principal Director, Office of the Deputy Assistant Secretary of Defense for Counternarcotics and Global Threats

·         John Sopko, Special Inspector General for Afghanistan Reconstruction

WHAT: Senate Caucus on International Narcotics Control hearing: Future U.S. Counternarcotics Efforts in Afghanistan

WHEN: 3 p.m., Wednesday, January 15

WHERE: Dirksen Senate Office Building, Room 138

A live stream of the hearing will be available online at www.drugcaucus.senate.gov.

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WASHINGTON - Senator Chuck Grassley of Iowa said today that Kennedy Salow of Walker has received an appointment to the U.S. Naval Academy in Annapolis, Md., for the 2014-2015 school year.

Salow is the daughter of Kim and Joel Salow.  She will graduate in May from Center Point-Urbana High School.  Salow participated in student council, basketball, volleyball, track, large group speech, Fellowship of Christian Athletes, National Honor Society, Art Club, and Just Eliminate Lies.

"Admission to the service academies is highly competitive and a great honor," Grassley said.  "Students work very hard to earn this kind of opportunity.  I wish Kennedy Salow well and thank her for her commitment to serve our nation."

Salow was among the 55 Iowans Grassley nominated this year for appointments to the U.S. service academies.  Information about seeking nominations can be found on Grassley's website.

For more than 200 years, these academies have educated and trained individuals to lead and command the U.S. armed forces.

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WASHINGTON, D.C. -  Today, Senator Chuck Grassley (R-IA) and Congressman George Holding (NC-13) sent a letter to Department of Housing and Urban Development (HUD) Secretary Shaun Donovan requesting answers and documentation regarding the questionable salary and compensation practices of the Raleigh Housing Authority (RHA).

Senator Grassley: "Federal tax dollars from HUD are meant to provide safe, affordable housing for people in need. At numerous housing authorities around the country, executive salaries and perks appear higher on the priority list than maintaining and providing quality housing. Some of these housing authorities have long waiting lists. HUD needs to exert more oversight to make sure housing authorities spend taxpayer dollars appropriately. As President Obama wants to help low-income Americans, he could start by making sure housing funding is spent as intended and not wasted on largess for housing authority executives."

Congressman Holding: "Out-of-control government spending is driving our country further and further into debt. We have to draw the line somewhere - our government cannot continue to spend as if there are no limits or consequences. The RHA's generous salary, time-off, and compensation policies certainly raise a red flag. HUD and the RHA need to justify how this agency can fully function without its Executive Director in the office for multiple weeks a year while still paying his salary. Senator Grassley has been long been a good steward of the taxpayer dollar in his oversight of public housing authorities that receive federal funding. It is important that HUD and the RHA explain how they are spending taxpayer money - and whether there are areas where we can cut wasteful and duplicative spending."

 

Background: The RHA receives a vast majority of its funds from HUD. Recent reports by the Raleigh News & Observer indicate that RHA Executive Director Steve Beam's annual compensation is well over $280,000 and he has been granted upwards of three months off a year. On Monday, January 7, 2014, Congressman George Holding requested a federal audit of the RHA.

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Weekly Video Address

Thursday, Jan. 9, 2014

Video can be found here.

The farm and nutrition bill has yet to be finalized.  It's my understanding that a few issues have yet to be resolved, including my provisions to define a farmer and place a hard cap of $250,000 on the amount of farm payments that any one farm can receive.

It's odd that these provisions are in dispute.  The payment limits and definition of a farmer provisions were fully debated by both the House and the Senate.  There should be a "do not touch" stamp on this portion of the bill.  My position is a majority position of both houses.  Things that are the same in both bills shouldn't be subject to conferring.

It's simple.  Currently, only 10 percent of the wealthiest farmers are getting nearly 70 percent of the benefits of the farm program.  To make matters worse, some people are exploiting a loophole that allows multiple people to claim they are "managers" of a farm to collect farm payments.  This is particularly absurd because many of these so called managers have little or nothing to do with the farms they get payments for.  These non-farmer managers are taking taxpayers for a ride.  That's not how the farm program was intended to function.

I'm working to get the farm program back to its original intent - to help small- and medium-sized farms get through the tough times.

This bill is supposed to be about reform.  Reform of the food stamp program and reform of the farm payment program.  Unfortunately, the members of Congress who are advocating to close loopholes for food stamps, are also advocating to leave open loopholes for the biggest farmers to exploit taxpayers.  It's the wrong way to do business.

Floor Statement of Senator Chuck Grassley

Nomination of Janet Yellen to be Fed Chairman

Delivered Monday, Jan. 6, 2014

Over the past five years the Federal Reserve has pursued unconventional and unprecedented monetary policy.  As vice chair of the Fed, Janet Yellen has been a strong proponent of these policies.  As chair, she is likely to continue these same easy money policies with the same, if not more, vigor than her predecessor.

I have deep concerns about the long-term effects of pursuing these policies.  Historical evidence suggests that failing to rein in easy money policies on a timely basis risks fueling an economic bubble or even hyperinflation.

It is true that one of the lessons learned from the Great Depression was that an overly tight monetary policy in a recession risks economically debilitating deflation.  Thus, understandably, when the recession hit in 2008 the Fed sought to avoid the mistakes of the past by lowering interest rates to encourage investment.  However, this expansionary monetary policy cannot continue into perpetuity without causing real and lasting damage to our economy.

Just as we should not repeat the mistakes of the Great Depression, we need to be careful not to repeat the mistakes that fueled our recent recession.  Let us not forget that our current economic stagnation began with the bursting of the housing bubble in late 2007.  A housing bubble fueled by rampant speculation that was driven, in part, by historically low interest rates maintained by the Fed between 2001 and 2004.

Yet, once again we see the Fed embarking on a policy of sustained historically low interest rates.  The Fed has now maintained the Federal Funds rate essentially at zero for over five years.  What may be the future consequences of this policy?  What new bubble will arise?  At this point, I do not think anyone can answer these questions definitively.  But no one can deny that the risks are real and could be devastating.

The Fed though has not just sought to maintain record low interest rates.  With its traditional monetary tool tapped out, the Fed has turned to a less conventional and more aggressive program in an attempt to jumpstart our economy and lower unemployment.

The Fed is now engaged in an open-ended policy it has termed quantitative easing.  Essentially, this is a fancy way to say the Fed is flooding the economy with trillions of dollars through large purchases of mortgage-backed securities and longer-term Treasury securities.  As a result of this program, the Fed has seen its balance sheet more than quadruple from around $800 billion to nearly $4 trillion.  Vice Chairman Yellen has not presented a plan to Congress on how the Fed plans to deal with this issue.

While I welcome the news from the Feds' December meeting that it intends to reduce the monthly purchases, I fear it may already be in too deep.  It remains unclear how the Fed will be able to go about unwinding its nearly $4 trillion balance sheet without spooking investors.

The stock market has become addicted to the Fed's easy money policies.  This has led one notable investment advisor to question whether the Fed will ever be able to end the quantitative easing program.

While the stock market has become addicted to easy money, the benefit to Main Street has been questionable at best. Unemployment remains high, bank lending remains tight, and savers discouraged.

While the benefits to Main Street remain unnoticeable, Main Street most certainly will feel the pain should the Fed carry on its easy money policy for too long.

For an example of what Main Street could be in store for, one need look no further than the late 1970s and early 1980s.  The easy money policies of the 1970s intended to spur employment resulted in stagflation, a period of hyperinflation and high unemployment.  During this period unemployment topped 10 percent while inflation exceeded 14 percent.

The experience of the late 1970s and early 1980s made it clear that once you let the inflation genie out of the bottle it is very difficult to stamp it out.   After suffering years of stagflation, Americans were then subject to the pain of unprecedented interest rates as high as 20 percent just to get hyperinflation back under control.

Statements by Ms. Yellen indicate she would be open to inflation exceeding the fed target of 2 percent as a means to achieve full employment.   While achieving full employment may be a noble goal, the Fed has a dismal record at being able to produce sustainable job creation through expansionary monetary policy.

While inflation may aid employment in the very short term, our experience with stagflation in the 1970s shows this tradeoff falls apart quickly as people's expectations change.  Sustainable job growth comes not from inflation, but price stability that promotes long-run economic growth.  We need a chairman focused on a strong dollar and low inflation.

My concerns about the Fed's easy money policies and inflation led me to vote against Chairman Bernanke for his second term at the Fed.   Because it appears that Ms. Yellen will continue to pursue these misguided policies, I cannot in good conscience vote in favor of her confirmation.

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WASHINGTON -- U.S. Senator Chuck Grassley will begin holding meetings with Iowans in every county again next year with meetings in Floyd and Chickasaw counties on Friday, Jan. 3.

"Representative government is a two-way street, and it's strengthened by dialogue between elected officials and the people we represent," Grassley said.  "I look forward to events and meetings where I listen to comments, hear concerns and respond directly to questions.  I'm committed to keeping in touch with Iowans."

Grassley has held at least one meeting with Iowans in each of the state's 99 counties every year since he was first elected to the U.S. Senate in 1980.

Grassley will be available for 15 minutes before the meeting at Nashua-Plainfield High School and 15 minutes after the meeting at Mitas Tires to answer questions from local reporters.  Otherwise, members of the media should contact the individual host about each event, as Grassley is a guest of each organization.

Here are the details of Grassley's schedule for Friday, Jan. 3:

 

12:45-1:45 p.m.

Q&A with students at Nashua-Plainfield High School

612 Greeley Street

Nashua

*The press availability from 12:30-12:45 p.m. will be in the main office.

2:15-3:15 p.m.

Tour and Q&A with employees at Mitas Tires North America, Inc.

1200 Rove Avenue

Charles City

*The press availability from 3:15-3:30 p.m. will be in the conference room.

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