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 Reserve’s 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.
Sincerely,
Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor
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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 Reserve’s 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.
Sincerely,
Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor
--
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