Rep. Kevin Brady (R-TX), Vice Chairman and top Republican on the Joint Economic Committee, today said the Federal Open Market Committee’s decision to expand its quantitative easing by purchasing $45 billion of long-term Treasury bonds, “a continuation of unnecessary and dangerous monetary policy to make up for failed fiscal policy.”
Brady continued, “By running the same monetary play over and over the Fed can expect the same economic result – a slow, irregular recovery hampered by the White House’s obsession with higher taxes, oppressive regulation and a unworkable new health care law. More Fed stimulus won’t solve that. In fact, it creates more uncertainty for job creators.”
“More troubling is that the FOMC is now telling us the new normal for full employment is a bleak 6 ½ per cent, and they are willing to risk higher inflation to achieve it. This is the wrong prescription for what ails our economy today, and risks our future prosperity.”
Rep. Brady is the sponsor of the Sound Dollar Act H.R.4180, which would replace the Fed’s current dual mandate with a single mandate to maintain the purchasing power of the dollar.