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French Hill previews Fed chair hearing, highlighting inflation, balance sheet and task forces
Summary
House Financial Services Committee chair French Hill said the new Federal Reserve chair will face questions on elevated inflation, plans to shrink the Fed balance sheet and how his price‑stability task force will shape policy guidance.
Congressman French Hill, chairman of the House Financial Services Committee, said the newly sworn‑in Federal Reserve chair will face rigorous questioning when he testifies on Capitol Hill for the first time.
"Inflation remains significantly elevated over 2%," French Hill said, adding that price stability is “the preeminent concern” for the Fed even as the broader economy shows strength and bank earnings remain robust. He said members will ask the chair about his outlook for the economy, his philosophy on setting monetary policy and how he will report and answer to Congress.
Lawmakers are expected to press the chair on the role and timeline of his proposed task forces, which Hill said will be watched for guidance on inflation strategy. "I think he'll rely on his price stability task force to give him some guidance on that," he said.
Hill also said lawmakers will question how the chair plans to manage the Fed's large balance sheet, which expanded significantly after the financial crisis and "hasn't really declined," and whether the chair can deliver on his confirmation‑stage goal of shrinking it. "What's his assessment for his goal ... of shrinking the balance sheet? I think those are both big questions," Hill said.
The interview referenced prior moments of divergence within the Fed, including a 2020 approach that allowed inflation to run above 2%; Hill suggested the new chair will be asked to assess that period and the lessons learned.
Hill framed the hearing as part policy scrutiny and part institutional oversight: members want both an explanation of near‑term rate strategy and clarity on the Fed's management of staff and operations. He said members will probe how the chair intends to run such a large organization amid recent criticism of the Fed's management.
The committee hearing is expected to cover these topics but the interview did not include the chair's responses or any new policy commitments. The scheduled testimony remains a congressional oversight opportunity and a public forum for the Fed chair to explain his plans and answer members' concerns.
