Skip to comments.Full Text: Republicansí Letter to Bernanke Questioning More Fed Action.
Posted on 09/20/2011 8:28:03 PM PDT by RightGeek
Dear Chairman Bernanke,
It is our understanding that the Board Members of the Federal Reserve will meet later this week to consider additional monetary stimulus proposals. We write to express our reservations about any such measures. Respectfully, we submit that the board should resist further extraordinary intervention in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people.
It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve has facilitated economic growth or reduced the unemployment rate. To the contrary, there has been significant concern expressed by Federal Reserve Board Members, academics, business leaders, Members of Congress and the public. Although the goal of quantitative easing was, in part, to stabilize the price level against deflationary fears, the Federal Reserves actions have likely led to more fluctuations and uncertainty in our already weak economy.
We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy. Such steps may erode the already weakened U.S. dollar or promote more borrowing by overleveraged consumers. To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery.
Ultimately, the American economy is driven by the confidence of consumers and investors and the innovations of its workers. The American people have reason to be skeptical of the Federal Reserve vastly increasing its role in the economy if measurable outcomes cannot be demonstrated.
We respectfully request that a copy of this letter be shared with each Member of the Board.
Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor
(Excerpt) Read more at blogs.wsj.com ...
The Goal is to re-elect Obama.
Who was it who made an infamous comment warning Bernanke against printing money to play politics? (rhetorical question)
Andrew Jackson fought the concept of a central bank. Today’s Fed is not accountable to Congress or the people. The events of the last 3 years have demonstrated it is the servant of big Wall Street banks and the executive branch of big government.
Bad idea. leave the Fed alone, they are not supposed to be subject to political interference. Even if the Fed is engaged in actions that could be critiqued, the oversight hearings are the place for that, and this opens up GOP to many charges ... including the claim by liberals that the GOP is trying to shut down the economy to unelect Obama.
Instead, send your letters to the Obama administration admonishing THEM to STOP SPENDING MONEY WE DONT HAVE.
Then pass an FY2012 budget that makes sure that is the case!
Challenge the Obama administration. Again and again.
There's only one thing the Fed can recommend, and I don't think Obama would like that idea: massively overhaul our income tax system to reduce compliance costs and to encourage more savings and investment in the USA. That would mean a drastic simplification of the tax code, essentially lower rates with far fewer tax loopholes. I would literally take it all the way to a 17.5% no-loophole flat-rate income tax that Steve Forbes proposed back in 1996, where the only loophole is a generous earned income (wages and pension payments) exemption for the household and eliminate the alternative minimum tax, estate tax, the marriage penalty tax, and taxes on savings, capital gains and stock dividend payments. The result would cut yearly tax compliance costs 75% and result in a overflow of money into our banks and investment companies from repatriated and new liquid assets coming from outside the USA, not to mention millions of jobs, thousands of factories and hundreds of corporate headquarters returning to the USA under better tax circumstances.
The Fed is accountable through oversights, the laws governing the Fed, and the appointment power of the politicians.
Too much political interference is bad for the Fed.