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WASHINGTON – During a hearing today to discuss the Federal Reserve’s semiannual monetary policy report, U.S. Senator Bob Corker (R-Tenn.), a member of the Senate Banking Committee, questioned Federal Reserve Chair Janet Yellen about the role Congress and the administration should play to put the United States on a sustainable fiscal trajectory.

“You're hoping the administration will develop policies that cause a sustainable trajectory relative to fiscal issues,” said Corker. “Is there anything that you’re seeing coming down the pipe or being debated that has caused you to raise that issue?”

“I think we’ve known for many, many years that the U.S. fiscal trajectory is not sustainable,” replied Yellen.

Corker added that Congress has been conducting itself “in a totally inappropriate way as it relates to the deficit” and agreed with Yellen that our country’s fiscal trajectory has been a long-standing problem that could be made worse by certain policies being discussed on Capitol Hill.

“Well, some of the policies that are being discussed might well raise deficits and, in that context, they may also have impacts on economic growth… I do think it’s worth pointing out that fiscal sustainability has been a long standing problem and that the U.S. fiscal course, as our population ages and health care costs increase, is already not sustainable,” said Yellen.

“[I] agree 100 percent,” replied Corker.

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