Rick Scott frets about Fed policy, ‘jeopardized’ dollar

Rick Scott. Image via AP.

The ongoing federal spending spree continues to frustrate U.S. Sen. Rick Scott, as most recently evidenced by a letter to the Federal Reserve.

Members of the Federal Open Market Committee received a missive Wednesday from Florida’s junior Senator as the Joe Biden administration continues to pursue economic stimulus policies.

Scott offered the usual heated rhetoric about the Democrats in control in Washington. The Senator slammed the Biden administration for choosing, in his view, to “blindly disregard this incredibly urgent matter” of deficit spending.

And he also raised questions unique to this letter, including ones relevant to the future of dollar dominance itself, and whether the global reserve currency has been “jeopardized” internationally.

Scott wondered why the Federal Reserve has “been purchasing a majority share of U.S. Treasuries,” propping up the market and facilitating “unprecedented” deficit spending and borrowing.

“Why is the Federal Reserve purchasing such a large share of U.S. federal debt? What plans does the Federal Reserve have to right size its ownership of U.S. federal debt and deficits going forward?”

“Have the actions of the Federal Reserve in the last 12 months undermined our currency’s reputation and jeopardized the U.S. dollar’s role in global financial markets? How and when will the Federal Reserve begin to wind down and end its historic expansionary interventions into the markets from the past 12 months,” Scott asked.

The likelihood of a change in policy given Democratic control of Washington is remote, of course.

Scott has made a habit of adversarial correspondence over spending issues, such as a letter last week to the acting head of the federal Office of Management and Budget.

“Democrats are living in a fantasyland where debt doesn’t matter, spending has no consequences and inflation is impossible,” the Senator from Naples protested.

Scott has also urged governors and mayors, including Florida Gov. Ron DeSantis, to return money not earmarked for virus relief.

“As my mom told me, two wrongs don’t make a right. We know it’s wrong to waste taxpayer money. Don’t waste the money,” Scott said earlier this month.

Thus far, Scott’s advice to state and local leaders has gone unheeded.