Rep. Kevin Brady (R-TX), Vice Chairman of and top Republican on the Joint Economic Committee, today said the Federal Open Market Committee’s decision to continue its quantitative easing policy until mid-2015, “heightens the uncertainty threatening our recovery.”
Brady continued, “Policy uncertainty, especially over the year-end fiscal cliff, is deterring ‘Main Street’ business from making job-creating investments, holding back our economy. The Fed’s continued QE ‘infinity’ only exacerbates this crippling uncertainty.”
“There is little more the Fed can do to help this economy. When trying to remove the roadblocks to our economic growth, monetary policy cannot fix what fiscal policy has created,” Brady said.
“The Federal Reserve is exposing taxpayers to enormous future risks stemming from its extraordinary monetary policy actions. The Fed needs to explain exactly what positive effects it expects its actions to have on economic growth and employment. Trillions of dollars of monetary morphine will not fix this economy. Congress and the President need to get our fiscal house in order and end the uncertainty over future policy that is holding our economy back.”
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 for price stability.