Banking and Finance Law Daily Wrap Up, FEDERAL RESERVE SYSTEM—Senators urge Fed to act on opioid crisis, (Sep 20, 2017)

By J. Preston Carter, J.D., LL.M.

Senators Sherrod Brown (D-Ohio), ranking member of the Senate Banking Committee, and Joe Donnelly (D-Ind), member of the Senate Banking Committee, sent a letter to Federal Reserve Board Chair Janet Yellen, urging the Fed to explore and devote resources to supplement federal government efforts to combat the nation’s opioid epidemic.

The letter referred approvingly to the Administration’s Commission on Combating Drug Addiction and the Opioid Crisis, but stated that the opioid epidemic is not just a public health and law enforcement matter: "This is an economic matter." The letter cited Yellen’s comments at a committee hearing on July 13, 2017, in which she said, "I do think it [opioid addiction epidemic] is related to the decline in labor force participation among prime-age workers."

The Senators believe the Fed, including the research departments at the Board and regional Reserve Banks, can help policymakers better understand the impact of the opioid epidemic on labor force participation rates, full employment, and on overall economic activity in communities. They added that the community development and business outreach functions of the Federal Reserve System can also engage businesses to look for solutions in their communities. Therefore, Brown and Donnelly are asking the Fed to further research this area in order to formulate policy responses to reduce and prevent further opioid use.

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