Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, issued the following statement today after the Federal Reserve announced a plan to further quantitative easing:
"Today's actions by the Federal Reserve reinforce what many of us in Congress believe: the Federal Reserve is in need of fundamental reform to return its focus to its core mission of conducting monetary policy and away from trying to run the entire $3 trillion U.S. economy. While the president's poor economic performance and misguided policies have left our country with perpetually high unemployment, the Fed should not continue down its extreme and dangerous path of conjuring up risky and ineffective programs in order to get a short-term bump in the stock market. Who exactly is this helping?
"If QE2 had little positive effect, QE3 will have less. The "wealth effect" doesn't work when it's generated by artificial government policy and not market fundamentals. These new policies will further depress savings for retirees and seniors, decrease investment by keeping rates low for years, and increase the likelihood for future hyperinflation. The trickle-down government economic policies of both the Obama administration and the Fed do not help economic growth or create jobs."