On Thursday, the Federal Reserve announced it will launch a third round of quantitative easing, also called QE3, to stimulate the economy. This new purchasing program will increase the Federal Reserve's balance sheet from $2.8 trillion to more than $3 trillion, and is another example of monetary policy trying to make up for the president's failed efforts to boost the economy.
I am frustrated that the Federal Reserve will continue this policy of quantitative easing, which is essentially just printing money. I fear that this measure will further reduce the value of the dollar and lead to more inflation.
The first two rounds of QE1 and QE2 were not able to lower the unemployment rate below 8 percent and it is unlikely QE3 will have a substantial impact either. Monetary policy is not holding the economy back, it is the president's constant threats of tax increases, over burdensome regulations, and persistent business uncertainty that are stifling job creation. The administration's fiscal policy is not working, and it is time for a change.
Instead of allowing the Federal Reserve to further devalue the dollar, we should audit the Federal Reserve and its management of the $16 trillion it lent out during the financial crisis. This is why I am a proud cosponsor of H.R. 459, the Federal Reserve Transparency Act of 2012, which was passed by the House in July.