The Wall Street Journal
Sen. Rick Scott
January 4, 2024

In “The Federal Reserve Deserves a Pat on the Back” (op-ed, Dec. 27), John Cochrane praises the “ample reserve” regime at the Fed. There is no one less deserving of praise right now than Chairman Jerome Powell and the Federal Reserve.

In contrast to the Fed’s mission, the ample-reserve regime relies on a large balance sheet forever. It has caused a massive misallocation of capital and is a radical shift in how the Fed operates. By growing its balance sheet, the Fed has locked in losses of more than a trillion dollars in the past year alone. Today, the Fed’s balance sheet is $7.7 trillion. That is eight times as high as it was when President Barack Obama took office in 2009.

The ample-reserve regime, other hastily launched Fed programs and high interest rates have tied up liquidity and credit for small businesses. It has all made things much tougher for Americans wanting to live their dreams.

Here is why this matters to people who don’t work on Wall Street: Today’s Fed is another example of the federal government running wild with zero accountability to you. Wall Street loves Mr. Powell because he is making them rich, while you get higher taxes and more inflation.

Sen. Rick Scott (R., Fla.)

Naples, Fla.