Republican Sen. Pat Toomey said Thursday it’s “unbelievable” that interest rates remain so low and it’s time to end the Federal Reserve’s “subjective” moving of the goal post.
“The Fed no longer has credibility, and you can see that. The divergence between the futures markets and the Fed’s own projections about what they’re going to do about interest rates—this is a huge problem,” he told CNBC’s “Squawk Box.”
The Fed is widely expected to begin raising its benchmark rate by early next year. It has kept its fed funds rate near zero since December 2008.
Toomey is a member of the Senate banking committee, which will hear testimony from Fed Chair Janet Yellen on Thursday. He has called on the central bank to adopt a rule that would lay out how it will set monetary policy. Under such a rule, the Fed would have to explain itself to Congress were it to deviate from its plan.
“I’ve never been wild about the idea of giving Congress control over monetary policy, but after seeing what this Fed has been doing for these many years now, I’m not so sure it would be any worse,” the Pennsylvania Republican said.