Chairman Crapo, Ranking Member Brown, and other members of the Committee, I am happy to present the Federal Reserve’s semiannual Monetary Policy Report to the Congress. Let me start by saying that my colleagues and I strongly support the goals Congress has set for monetary policy—maximum employment and price stability. We are committed to providing transparency about the Federal Reserve’s policies and programs.
However, in practice, I believe that it would be administratively challenging to have different tax treatments for given corporations based on whether they are “financial” or “nonfinancial.” Hence, my suggested policy proposal applies to all corporate debt.