GOP Warns Bernanke & Co. About More Easing
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Top Republican congressional leaders, which include House Speaker John Boehner, Senate Minority Leader Mitch McConnell, House Majority Leader Eric Cantor, and Senate Minority Whip Jon Kyl, wrote a letter to the Ben Bernanke and the Federal Reserve insisting that they "resist further extraordinary intervention in the U.S. economy."
The Republican leaders state that the Fed's past attempts have not positively affected the economy and have only increased economic uncertainty. They believe any more monetary easing attempts may "exacerbate current problems or further harm the U.S. economy."
Senator Charles Schumer, a member of the Democratic leadership team, called the letter "a heavy handed attempt to meddle in the Fed's independent stewardship of monetary policy," and stated that "should be ignored by Chairman Bernanke and the Fed's policymakers."
The Fed is expected to announce a decision today at 2:15, which is currently being called the "Operation Twist". An option that may come from the new plan could be that the Fed shifts its securities portfolio so it holds more long-term debt. Another plan includes lowering the 0.25 percent interest rate paid to private banks that hold reserves at the central bank.
The Republican leaders state that the Fed's past attempts have not positively affected the economy and have only increased economic uncertainty. They believe any more monetary easing attempts may "exacerbate current problems or further harm the U.S. economy."
Senator Charles Schumer, a member of the Democratic leadership team, called the letter "a heavy handed attempt to meddle in the Fed's independent stewardship of monetary policy," and stated that "should be ignored by Chairman Bernanke and the Fed's policymakers."
The Fed is expected to announce a decision today at 2:15, which is currently being called the "Operation Twist". An option that may come from the new plan could be that the Fed shifts its securities portfolio so it holds more long-term debt. Another plan includes lowering the 0.25 percent interest rate paid to private banks that hold reserves at the central bank.
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